Fannie Mae offers expanded options for green improvements

by Ryan Smith13 Jun 2016
Renovation loans can be a great asset to any originator’s toolbox – but it’s important to know about all the options out there. Fannie Mae has introduced a new renovation loan that gives homeowners more options for financing energy efficiency improvements in their homes.

Fannie Mae’s HomeStyle Energy mortgage gives borrowers an enhanced option for financing both energy and water efficiency improvements. And borrowers with existing, high-interest energy improvement loans can easily roll those loans into a new mortgage or a refinance of an existing mortgage, according to Fannie. The loan also gives borrowers the option to finance new energy upgrades when purchasing or refinancing a home.

HomeStyle Energy loans can be used on one- to four-unit properties, including condominiums, and are available for all approved Fannie Mae Lenders.

“The National Association of Home Builders has found that energy efficient features are highly desired by homeowners, and we are committed to helping lenders serve these customers,” said Carlos Perez, senior vice president and chief credit officer for single-family at Fannie Mae.  “HomeStyle Energy mortgage will be particularly helpful to borrowers who want to pay off debt for existing energy improvements.  It will also benefit homeowners who want to make their home more comfortable and efficient.”

Borrowers who want to improve the energy efficiency of a home they’re purchasing can receive up to 15% of the home’s as-completed appraisal value to use for upgrades, according to Fannie Mae. An energy report is required, an the lender must place the funds in an escrow account – but borrowers can finance up to $3,500 in weatherization or water efficiency upgrades without getting an energy report.

“HomeStyle Energy mortgages can simplify the financing of energy-efficient improvements,” Fannie Mae stated in a release. “This financing is likely more affordable than a subordinate lien, home equity line of credit, or unsecured loan, or loan from an HVAC vendor. In addition, most PACE loans are not eligible for Fannie Mae-backed mortgages, but can be paid off with this option.”

For more information about HomeStyle Energy loans, click here.
 

COMMENTS

  • by Gabe | 6/14/2016 12:39:57 PM

    Fannie Mae in cahoots with Bank of America FKA Countrywide....passed onto Green Tree NKA Ditech (criminals MO is to change their names when their crimes come to light)...hand in hand with their not so trusty substitute trustee attorneys (ie Samuel I White firm ..one of MANY)...continue to perpetuate FRAUD and theft of homes by submitting FORGED owners signatures on DOTs and then stamped with a phony endorsement...and then the fabricated evidence is turned over to the courts and used to foreclose on thousands upon thousands of families and homeowners who have been nothing but lied to and criminalized by the banksters from the start. Its the TRUTH but these entities care nothing for the TRUTH, instead care only for their worthless debt dollars and will do anything, including committing felonies and fraud upon the courts , to get it. Racketeering, mail fraud, forgery ...just another day, another dollar. The state regulators do nothing, the federal govt does nothing, except cuts deals w/the criminal bankers who never follow through on their end. The crimes are ALLOWED to continue, the homes have been paid for several times over in the biggest ponzi scheme the world has ever seen...and still the greedy banks want the home and therefore fabricate the evidence to foreclose, how truly pathetic and disgusting. One day, these greedy lowlifes will meet their Creator and will have to answer to Him. Until that time, enjoy your money god.

  • by legal guy | 7/20/2016 12:31:24 PM

    well if its that simple there should be numerous class action attorneys lining up to take on this lawsuit. With class action legal fees at 30% of the amount there should be no problem. So outline the problem and start soliciting attorneys instead of shooting your mouth off half cocked.

  • by Woman on fire | 9/2/2016 8:46:02 AM

    Exact same issues at hand and currently 20,000 in lawyers fees in 2 yrs. 3 contracts completely satisfied on our side that met every requirement FNMA offered but when it came to closing FNMA NEVER SHOWED! We even offered 20,000 more than what we owed on the house......someone doesn't have there paperwork in order to produce title it seems. Crooks for sure.

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