Home Loans California & Arizona

We Have an Under Utilized Home Loan Program That Most Real Estate Agents and Homebuyers Are Not Aware Of

April 11th, 2014 6:15 PM by Nathan Rufty

This home loan program can shield new light when a homebuyer is looking to make an offer on a home but only sees dollars signs thinking of all the money that it will take to improve some much needed upgrades.

EEMI am speaking of the Energy Efficient Mortgage (EEM) with an FHA and a VA home loan program. If you are a buyer and see a home that you would like to own, but it is a dated and may need new double pane windows, hot water heater, air conditioning unit, attic insulation, heating unit, slider doors and new appliances. You can utilize the EEM home loan program to upgrade these such items, saving you thousands of dollars over the life of the loan.That sounds nice, so before you walk away from a home that meets your needs in size, location, bedroom and bathroom count but the windows are old, think about the Energy Efficient Mortgage program to solve that issue.

The benefits of this program is that it is one loan, not a 2nd lien on the property that can adjust on you. No added closing time, as long as we establish that you will take advantage of the EEM program from the start of the escrow process. On the FHA home loan program you are allotted 5% of the appraised value, example: if the appraisal comes in at $300,000, you will have $15,000 to spend on the upgrades.

The best part about the Energy Efficient Mortgage program in California is that the home does not have to appraise for the additional money and the home buyers does not need to qualify for the extra funds, that is a win win. One of the biggest change to the curb appeal on a home are the windows and front door, this program will allow you to address the curb appearance.

Also, the benefit is resale value, when it is time to sell your home and move up to something bigger, the new buyer may choose your home over another because of the upgrades that are already done. In the meantime of you owning the home, you should see a month over month savings on the electrical bill.

Most buyers and Realtors are not aware of this program, now they should be. We are not funding enough of these loans, there is nothing added on the real estate side of the transaction, just need to be aware of the program and let your lender know that the buyer is going with the EEM once esc
row is open so we have the proper paperwork upfront and start on the Home Energy Rating System (HERS) report. The HERS report measures a home's energy efficiency to ensure the cost savings will out perform the cost of the upgrades.
The Energy Efficient loan program is also offered on the VA home loan program up to $6000 as well on a purchase and refinance transaction. Existing home owners can also take advantage of the EEM home loan program. Such as looking to sell your home put you fear that most buyers will not make an offer on your home because it lacks updating. Think about refinancing your home on this program, attract more buyers and miss up to 2 months worth of mortgage payments as your home is in escrow.Now that you are aware of this program, use it more. I am a lender who knows how to work on the program on my end and I will walk you through process of the Energy Efficient Mortgage and start saving on your utility bill right when you move in the home.

by Nathan Rufty
Posted in:General
Posted by Nathan Rufty on April 11th, 2014 6:15 PM

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