Green Mortgages Are On The Increase

Ireland has begun introducing it's first equity release mortgages which will allow homeowners to borrow money so that they can introduce new green technology into their homes. This retrofitting of their homes has recently been launched in February and will enable homeowners to save money and energy by installing these eco friendly technologies within their homes.

Some Irish banks are launching these schemes. This may come as a surprise to some people due to the fact that Ireland suffered badly in the economic meltdown but it shows that green retrofitting is beginning to become noticed in Ireland. It also points towards lenders taking green issues seriously and is wiling to spend money to eventually make it back.

Many property prices in Ireland are continuing to drop but the banks are recognising that if you spend money to save energy in your home then it will reinforce and perhaps increase your property's value. The logic behind the scheme is easily explained due to the spiralling costs of gas, oil and electricity on a monthly basis in the UK and Ireland. Heating your home has never been as expensive as it is today and prices seem to keep going up and up.

How does it work?

In Ireland, as long as you have enough equity in your home and the Sustainable Energy Authority of Ireland has approved your home suitable for a retrofit grant then you qualify; it is as simple as that. It is paid to those undertaking the improvements, this could be anything from extra insulation in your roof or your walls. It also covers a more efficient boiler being installed than the current one in your home. Solar panels heating systems, geothermal heat pumps or wood chip and pellet burners are also classed as being part of an eco retrofit.

In Ireland customers can borrow anything from 5,000 Euros up to a possible 90% of the value of your home. Repayments can be anything from five years up to a possible 30 years. The benefits of this product is that when you combine the retrofit grant from the Sustainable Energy Authority of Ireland with a green equity release loan the customer pays little upfront for the improvements to their home but they notice the savings on their energy bills immediately. However due to the frontloaded interest repayments you do have to make payments straight away to the bank.

In the UK there are also some mortgage lenders who are offering their clients "green mortgages".

Fiona Davies is sales director of http://www.ecofriendlyhomescompany.com/
She has worked in the last business for the last ten years.

Original article

Energy Efficient Mortgages + Distressed Real Estate = A Match Made in Heaven!

The housing market crash resulted in a surge in foreclosures and bank owned properties, especially in the Miami market. Foreclosures and REO properties are typically considered distressed properties because of deferred maintenance. If you're thinking of buying one of these properties, you should know that these distressed properties will likely need some work, and will seldom be move in ready. Homeowners in foreclosure often neglect essential upkeep, or worse, may even vandalize/strip their properties down when they learn that the bank is coming in to take over.

According to RealtyTrac, about twenty-five percent of all residential sales for the fourth quarter of 2010 were either REO (real estate owned) or short sales. On average, these homes sold for roughly forty percent less than comparable (non-distressed) homes. The undesirable conditions of these properties make most buyers walk. Given the current depressed economic climate, most homeowners are not eager or able to complete high-end remodeling projects. However, through an energy efficient mortgage (EEM; aka energy improvement mortgage) program, remodeling and renovating can be very affordable, requiring minimal, if any, out of pocket costs. And with the help of an energy efficient mortgage, these distressed properties can be transformed into ideal green homes.

Distressed properties may require simple sustainable projects, like replacing older features or upgrading basic systems to take advantage of energy efficient improvements, or more involved projects such as complete kitchen renovation. Maybe the place needs a new roof, new flooring, or has an electric system that is not up to code. EEMs allow the homebuyer to obtain financing to purchase a house in need of such repairs or modernizations, and incorporate the additional funds needed for the rehabilitation into the mortgage. EEMs allow for renovations and sustainable improvements up to $45,000, which, when rolled into the mortgage would result in a payment increase in the ballpark of $270.* That's much easier to swing than fronting $45K!!! This program is perfect for those who are first time home buyers, or for those with limited cash for a down payment/closing costs/renovation expenses.

So, if you want to get a great deal on a house but don't have the money that may be needed to renovate a foreclosed/REO property, think twice before you pass on buying a distressed property. An EEM may be just the solution for you!

*based on a 6% interest rate, 30 year amortization schedule

Certified in Energy Improvement Mortgages
FHA 203k
Specializing in distressed properties offering borrowers an opportunity rehabilitate the cost of energy-efficient "green" improvements.

Original article