Green-Home Buyers May Get Bigger Mortgages
July 30, 2013
A new bill in the Senate is proposing that borrowers who buy energy-efficient homes be able to qualify for larger mortgages. The bipartisan bill, called the SAVE Act, would allow mortgage lenders to factor energy savings into 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 the bill is approved, lenders with loans backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration would account for expected energy cost savings. The bill would also require lenders to add the value of expected energy savings to the value of the home in the appraisal, CNBC reports.
Source: “How a greener home could get you a bigger mortgage,” CNBC (July 19, 2013)
Updated: October 26, 2021