Home buyers purchasing energy-efficient properties could qualify for lager mortgages than their incomes would normally allow under a Senate bill reintroduced on June 6, 2012 with broad real estate industry support.<\/p>\n
The measure would allow lenders to include projected energy savings from efficiency upgrades when measuring the borrower\u2019s income against expenses and the value of the home against the debt.\u00a0 In addition to giving borrowers larger loans in new purchases and refinancing, it could also lower their interest rates.<\/p>\n
The government already promotes so-called-energy-efficient mortgages under a Department of Housing and Urban Development program.\u00a0 But the proposed legislation would require lenders to take the projected energy savings into account when presented with a qualified energy report.\u00a0 Decreasing the amount of energy a home uses increases the amount of dollars in the pockets of homeowners.<\/p>\n
The bill was originally introduced in 2011 and although it attracted support from groups across a broad political spectrum \u2013 including the United States Chamber of Commerce and the Center for American Progress \u2013 it failed to gain approval.\u00a0 The sponsor of the bill have broadened its appeal within the real estate industry, chiefly by eliminating provisions that could have penalized older, less efficient homes or those lacking a report based on estimated energy consumption.<\/p>\n
In absence of a home energy report, which would come from an approved third-party inspector, the home\u2019s energy use would not become a factor.\u00a0 But lenders would provide applicants with information about the benefits of investing in energy-saving upgrades and counsel them on how they could go about doing this.<\/p>\n
If passed the proposal could help close the gap, in addition to promoting energy conservation and construction jobs, generating $1.1 billion a year in saving for consumers by 2021.\u00a0 Loan applicants could expect to gain about 5 percent more borrowing power on average.<\/p>\n","protected":false},"excerpt":{"rendered":"
Home buyers purchasing energy-efficient properties could qualify for lager mortgages than their incomes would normally allow under a Senate bill reintroduced on June 6, 2012 with broad real estate industry support. The measure would allow lenders to include projected energy … Continue reading