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:
Replacement or upgrade of existing HVAC systems;
Weatherization, including storm windows and doors, insulation, and weather stripping;
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.
The unsecured Fannie Mae Energy Loan for $1,000 to $20,000 is available from some lenders. The approval for this loan is fast and
simple. The Energy Loan’s 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
