Ever fall in love with a house only to discover it has drafty windows and poor insulation? With the cost of energy going up and up, eco-efficiency is a growing concern for homebuyers and homeowners. That’s where having a trusted lender, like PrimeLending, by your side can make all the difference. PrimeLending offers over 400 mortgage options which can help you reach your long- and short-term home goals whether they are to buy a new home or continue to enjoy your current one.
What is a green mortgage?
A green mortgage is a home loan that can help you finance energy efficient upgrades to your home. These are common needs for homebuyers who purchase an older home or for homeowners who want to make some energy-saving changes to their current house.
With Green Home Loans from PrimeLending, its easier for homebuyer and homeowners to make cost-saving upgrades to their homes. Things like poor insulation or high utility bills shouldn’t hold anyone back from buying or enjoying their home. Using a Green Home Loan could help you make eco-friendly upgrades to your home including:
- Energy efficient windows and doors
- Solar panels
- Roof, floor, or wall insulation
- Energy-saving HVAC systems and appliances.
How do I know if a mortgage is “green”?
Starting a conversation with a loan officer you trust is the best way to learn about all of your mortgage options. Almost any mortgage could be used to make green improvements to your home. Common examples of mortgages from PrimeLending that you can use to go green are:
- FHA loans—Backed by the Federal Housing Administration (FHA), this loan is popular among first-time homebuyers as it requires a smaller down payment and has more flexible credit requirements. The FHA also offers renovation loans—FHA 203k—in full/standard and limited options to help homeowners make both large and small energy conserving renovations.
- USDA loans—Another option is the USDA loan, backed by the United States Department of Agriculture (USDA), which was designed as a mortgage alternative for rural homebuyers. This loan offers 100% financing which means borrowers don’t have to make a down payment and has a lower standard interest rate, both of which could help borrowers afford to make any necessary energy-efficient home updates.
- Conventional loans—Available in fixed- and adjustable-rate options, conventional loans often have additional credit and financial requirements to meet. That said, if qualified borrowers can make at least a 20% down payment, this loan can offer more flexible terms and fewer restrictions than other loans.
- Jumbo loans—When you need a loan for an amount that exceeds conforming limits regulated by Fannie Mae and Freddie Mac, a jumbo loan could help you purchase your next home. With the higher loan amount afforded by a jumbo loan, a homebuyer could use the funds for things like energy-saving appliances and solar panels.
- Renovation loans—A renovation loan can help you make green upgrades to your existing home or, depending on the mortgage, purchase and renovate your next home. Popular Loan options designed to renovate older homes are the HomeStyle and CHOICERenovation loans offered by Fannie Mae and Freddie Mac, respectively.
PrimeLending loan officers are experts in their local market, but have our national lending power to back them up, which means they can say “yes” more often. How? With more than 400 loan programs to choose from, they can find the mortgage that best fits your home goals now, and in the future. Connect with your local loan expert today to get started.
