Improving the energy performance of your home makes sense – for reducing utility bills, increasing home value, protecting your health, and preserving natural resources. The benefits are great, and there are multiple financing options to choose from.
There is a range of choices:
Mortgage lenders have developed green loan packages that take into consideration the lower financial risks that greener homes represent. Here are three potential options:
203K Renovation Loan Program – A mortgage loan – without additional qualifying requirements – to help pay for home improvements before move-in. A 203K is a single loan covering both the home purchase and the improvements.
For more details: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
Energy Efficient Mortgage (EEM) – An EEM is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.
For more details: http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.energy_efficient_mortgage
A PACE Bond is a bond where the proceeds are lent to commercial and residential property owners to finance energy retrofits (efficiency measures and small renewable energy systems) and who then repay their loans over 20 years via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be typically used to retrofit both commercial and residential properties.
For more details: http://www.pacenow.org/
Federal Tax Credits
For more details: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Utility (PG&E) Rebates
Customers must have natural gas and/or electricity distributed by Pacific Gas and Electric
- Clothes Washer
- Room Air Conditioner
- Water Heater
- Attic & Wall Insulation
- Cool Roof
Heating & Cooling (HVAC)
- Central Gas Furnace
- Variable Speed Motor Air Handler System
- Whole House Fan
- Duct Sealing Incentive
Pool Pumps & Motors
- Pool Filtration Pumps and Motors
For more details: http://www.pge.com/myhome/saveenergymoney/rebates/