Buy a Green Home, Get a Better, Bigger Mortgage?
Homeowners who improve the energy efficiency of their homes can qualify for several federal, NY state and NYC property tax breaks for making their homes greener.
A bill introduced in the Senate by senators Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.) will offer home buyers another incentive. The bill would require lenders to take into consideration the energy -efficient features of a home when calculating a borrower's income/debt ratio.
The bill would allow buyers to qualify for a larger loan or a lower rate if a home is energy efficient. The lender, when figuring what borrowers can afford to repay, banks assume they’ll have to spend a certain amount of housing costs for heating, cooling, and other utility usage, based on what’s typical for the area and the type and size of home.
The Senate bill would require lenders to assume that someone in a more energy-efficient home would spend less and therefore be able to afford to borrow more.
A home-energy report would have to be prepared by an approved inspector and lenders would explain the benefits of investing in green upgrades.
A similar bill was introduced a few years ago that also penalized less-efficient homes. This bill would only reward those with greener features.
Click here to read more in the NY Times.
Click here to read more about Green NYC
A bill introduced in the Senate by senators Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.) will offer home buyers another incentive. The bill would require lenders to take into consideration the energy -efficient features of a home when calculating a borrower's income/debt ratio.
The bill would allow buyers to qualify for a larger loan or a lower rate if a home is energy efficient. The lender, when figuring what borrowers can afford to repay, banks assume they’ll have to spend a certain amount of housing costs for heating, cooling, and other utility usage, based on what’s typical for the area and the type and size of home.
The Senate bill would require lenders to assume that someone in a more energy-efficient home would spend less and therefore be able to afford to borrow more.
A home-energy report would have to be prepared by an approved inspector and lenders would explain the benefits of investing in green upgrades.
A similar bill was introduced a few years ago that also penalized less-efficient homes. This bill would only reward those with greener features.
Click here to read more in the NY Times.
Click here to read more about Green NYC
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