One of the biggest considerations when it comes to mostly anything now-a-days is the environment. Energy efficiency is becoming more and more relevant and it is now encroaching on the mortgage industry. Energy efficient homes are homes that have additions such as solar panels or high efficiency appliances in order to save energy costs for the home. A new bipartisan bill in the Senate is proposing that home buyers who purchase energy efficient homes should qualify for a higher amount with their mortgage. This new act, which is labeled the SAVE ACT, would allow lenders to factor in energy savings to the value of a home.
"It's about energy efficiency, it's about savings, it's about increasing the borrowing power for the borrower. I think it's a win-win for the industry," said Sen. Johnny Isakson, R-Ga., a co-sponsor of the bill.
If approved, any lender with loans backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (which accounts for approximately 90% of the market) would account for expected energy cost savings. Another aspect the bill would affect is appraisals. The bill would require lenders to add the value of expected energy savings into the value of the home being appraised.
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