Fannie Mae Adopts New Energy Improvement Feature for Mortgage Loans
Fannie Mae had previously dropped its Energy Efficient Mortgage feature. It has replaced the feature with a new Energy Improvement Feature. The new feature only applies to the upgrading of an existing home through a purchase or re-finance mortgage. The features of the new Fannie Mae product are:
- The financing of energy improvements found by a RESNET Home Energy Rating to be cost-effective of up to 10% of the as-completed appraisal. This amount is subject to standard Fannie Mae LTV, CLV and HCLTV ratios.
- The cost of the home energy rating can be included as the cost of the energy improvements.
- Appraisers will be responsible to determine the as-completed value of the home based upon the energy improvements that were made.
- Appraisers will also be responsible for verification that the energy improvements being financed were completed.
- Only single family homes qualify.
Visit RESNET and find out more…
DOE and HUD Launch Pilot Home Efficiency Financing Program
DOE and U.S. Department of Housing and Urban Development (HUD) unveiled on April 21 a list of 18 lenders that will participate in a new two-year pilot program offering homeowners low-cost loans to make energy-saving improvements to their homes. These new “PowerSaver” loans, backed by the Federal Housing Administration, will offer homeowners up to $25,000 to make energy efficient improvements of their choice. Applicants can use the loans for the installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
