Power Saver is a Pilot program recently rolled out by H.U.D. allowing selected lenders to provide financing for energy efficiency upgrades for homeowners. This new EEM is a second loan and is secured by real estate. The loan to value (you need equity!) may not exceed 100% of home value based on appraisal when including this loan and the existing loans. The maximum loan amount is $25,000. Because the program is new to the lending market, no lender has the program available at this time. They must first create the respective compliance loan documents, train their staff and determine the interest rates and fees. At this time FNMA is going to be the primary purchaser of these loans and is looking at rates between 6-7%. However; that rate is at PAR, meaning no lender makes any money. You can almost be assured the rates will be higher than the FNMA pricing by the time it gets to the consumer. GoGreen Lending is one of the best resources for the availability and loan terms of the Power Saver. Feel free to e-mail our office to help answer any questions.
No comments:
Post a Comment