The environmental impact people have on the world today, including the consideration of Green Mortgages in Florida is nothing short of frustrating. Our buildings are responsible for almost 40% of the carbon monoxide emissions in the U.S. alone, and our homes are responsible for half of that. The emissions that come from power generation to ensure our homes are cool enough, warm enough, and provide us with light, internet, and more, are staggering.
To combat these problems, many companies, including Synergy Homes, are turning to less conventional building techniques to help undo so much of what has already been done, and that may be a contributing factor to reversing the damage done by our emissions in the future.
Besides buying more energy-efficient, eco-friendly homes from Synergy, though, is there more you could be doing to help create a cleaner world? Absolutely. Green mortgages in Florida can also be helpful.
What are Green Mortgages in Florida?
Green mortgages are sometimes called energy-efficient mortgages, and these allow borrowers to finance eco-friendly homes, or rather the technology that makes homes eco-friendly, at a much lower rate than you might imagine.
Buyers who choose these loans mean they have access to lenders who allow higher debt-to-income ratios – typically between two and five percent.
That means you can apply more money to your mortgage because they know you’ll be able to spend that on your loan instead of monthly expenses like water and utilities fees.
More than that, though, you can expect a lower annual interest rate, which results in incredible savings over the life of the loan.
There are some restrictions with these loans. In most cases, you’ll need to work with a green contractor like Synergy Homes, and your lender will use software to calculate the energy and water savings your home will experience based on its size.
That helps to better rate the loan. Additionally, you must work with a qualified green appraiser to get the total value on the home before you can take out this kind of loan.
Different Types of Green Mortgages
As you consider whether this type of loan might be right for you, it may be helpful to know there are a number of different kinds of green mortgages from different lenders.
Homestyle Energy Mortgage
This is a loan program that works with Fannie Mae guidelines and underwriting and is offered by private lenders. Borrowers can put down as little as 3%, but private mortgage insurance may be required if your down payment is too low. This program is not limited to new purchases, as homeowners can use it as a refinancing tool and receive up to 15% of the home’s value to finish green improvements to the property.
Green Choice Mortgage
Private lenders offer a loan program that is supported by Fannie Mae for buying a new home and financing future eco home improvements simultaneously. Borrowers can make a down payment as low as 3%. This program isn’t restricted to new purchases, as homeowners can also use it as a refinancing tool to help cover green improvements.
FHA Loans
A program backed by the Federal Housing Administration, this allows borrowers to get the money to make green improvements to both new and existing properties. It also covers the cost of a green new build home. This program is similar to conventional mortgage options in that borrowers can finance the cost of future eco home upgrades upfront at the time of purchase or refinance. It allows buyers to put down a deposit as small as 3.5%. What’s more, though, is that they might qualify for larger loan amounts based on the fact that the green improvements they make could add value to the home itself.
VA Loans
Those who are currently serving in the military, veterans, and qualified military spouses have the opportunity to take advantage of the U.S. Department of Veterans Affairs’ loan guarantee to finance eco home improvements. Through the VA EEM loan option, borrowers can either buy a new green home or finance the changes necessary to make their home greener.
Is a Green Mortgage Right for You? A Green Home Begins the Process
If you think green mortgages in Florida are the right choice for your life, it’s important to note that they begin with eco-friendly homes, something we specialize in. To learn more about our green building process and the energy-efficient results present in every home we create, contact us today.
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