Read the White Paper from RESNET on “Introducing Rationality into the Home Financing Process”. This document provides valuable information on how including energy efficiency into the mortgage process makes economic sense. This paper proves the importance of using energy mortgages to finance existing and new home energy efficiency and clean energy improvements.
The proposed funding to spur investments in residential energy efficiency and clean energy upgrades under President Biden’s plan is expected to potentially create millions of jobs.
Energy mortgages will likely be updated to incorporate stimulus funds with rebates and tax incentives.
Cloud-based quality assurance software is becoming available to review the accuracy of energy modeling and rating reports.
Here is a recent video describing President Joe Biden’s plans:
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New for 2021:
Freddie Mac CHOICERenovation® Mortgages now offer substantially larger financing amounts than other energy mortgage products currently available.
Just take a look at the following example:
The purchase price for an existing home is $75,000
The cost of the energy and other improvements is $180,000 (More than twice the original price of the home.)
The ‘As completed’ value of the property is $250,000 or the maximum allowable renovation cost. (Owner added $5,000 to complete the transaction.)
This revolutionary energy mortgage program has the potential to refinance and upgrade existing residences into more energy efficient, durable, safe and healthy living units.