Fannie Mae has introduced HomeStyle® Energy mortgage, an enhanced option for borrowers who want to finance energy and water efficiency improvements to their home. Borrowers with an existing, higher-interest energy improvement loan, can more easily roll that loan into a new mortgage or into a refinance of an existing mortgage. In addition, borrowers will have options to finance new energy upgrades when purchasing or refinancing a home. HomeStyle Energy mortgage can be used on 1-4 unit properties, including condominium units, and is 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, 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 are purchasing a home and want to improve the energy efficiency of the property can now receive up to 15% of the as-completed appraised value of the home to use for the upgrades. An energy report is required, and the lender must place these funds into an escrow account. Borrowers can finance up to $3,500 in weatherization or water-efficiency upgrades without having to obtain an energy report.
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