Savings from lower energy bills may pat for financing energy efficiemcy improvements

JRV Home Inspection Services LLC

Step 4: FINANCING

Realize your energy savings with a Home Energy Tune-uPŽ and Get Help With Energy Efficiency Financing

Energy improvements are unique because they reduce energy bills thereby increasing disposable income.

Financing energy efficiency improvements as part of your home mortgage is the best way to go. You have the advantage of (1) low monthly payments due to a 30-year term and a relatively low interest rate; and (2) interest that is deductible from your income tax.

The improvements listed in the Improvements that Save More than they Cost section of the Tune-uP Report will automatically qualify for financing since they increase the value of the house without reducing disposable income.

The FHA Streamlined (k) Limited Repair Program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.
- The Streamlined (k) program includes the following energy-efficiency improvements:
  - Upgrade of heating/cooling systems and water heaters;
  - Weatherization, including insulation, seal-up and window replacement;
  - Purchase and installation of appliances, including refrigerators, freezers, and washers/dryers.
- It has no minimum repair cost threshold.
- It has a maximum mortgage amount for repair costs of $35,000.
- It can be issued by any FHA lender.
- It does not require a rating.
- See HUD Mortgagee Letter 2005-50 for details of the program.
The unsecured Fannie Mae Energy Loan for $1,000 to $20,000 is available from a few lenders. The Energy Loans 10-year term and interest rates are generally better than those offered by contractors or suppliers, though not as good as the Streamlined (K).
Some electric or gas utilities offer financing for energy efficiency improvements, as well as rebates for energy efficient appliances and heating and cooling systems. Check your utilities' website for more information about financing and rebates that may be available. See the Energy Star Rebate Locator

Energy Loans, Incentives, and Initiatives

Nationally Available

EnergyStarLoans.com

USDA - Energy Initiatives

See more information about rebates & loans from utilities

JRV Home Inspection Services LLC
28 Edgewood Drive
Wallingford, CT 06492
(203) 697-1147

Member of The
American Society of Home Inspectors