Financing Energy Improvements at the time of purchase.

As an Energy Auditor and Home Inspector here in Reno I get to see allot of houses that are in need of repairs. Most of the time these repairs have to come out of pocket. Certain loans like 203k might be an option for some people. 

Energy Efficiency is not considered by many Real Estate professionals as something their clients want. Well they are wrong. About 80% of buyer are concerned with energy costs. Even more are concerned with having a healthy home. So what's the solution? 

Energy retrofits are the solution. Energy improvements done by qualified people will address energy, comfort, and heath issues in a home and set a course of action for repairs. Most of the time buyers don't have extra funds to do large repairs. This is where the Energy Efficient Mortgage (EEM) comes in. This FHA add on will allow buyers to get an additional 5% of the purchase price to do these retrofits. There is no additional qualifying an it can go over appraised value. The extra amount paid each month to the loan is offset or exceeded by the energy savings.

So anyone buying a home 12+ years or older should absolutely take advantage of this As an Energy Auditor I perform the Audit prior to closing. The contractor then take my report and submits a proposal to the lender. The lender approved it and after close the work is done. I come back and test out the contractors work to make sure the buyer got what they paid for. With in this EEM budget we are seeing on average a 26% savings in utilities. Plus the more comfortable and healthy home will make the clients happy and is great for resale. 

It really simple for the buyer and the agents. Seeing that I can do the Home Inspection and Energy Audit the buyer can save money and the agent only has to open the house once. It's a win for everyone.
  • August 15 2012 - Reno
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