Energy Efficient Loans and Products

Published September 2013 by

While the rising costs of energy are definitely having a negative impact on the average householder, greener power sources and updated, energy-efficient technology is gaining popularity as a sustainable, affordable alternative. Energy efficient loans, or “green loans”, are available to homeowners from Sacramento solar specialists, local authorities and the federal government to improve the energy efficiency of your home. Low rate loans are available from various sources to help install solar panels or make other resource-saving improvements.

Energy Focused Loans

Credit-worthy homeowners should have a very easy time securing such a loan. One example is the FHA Energy-Efficient Mortgages which can be used to add value to the principal of a loan to cover the installation of energy efficient resource. According to the Eco Broker, “An energy-efficient mortgage can add an additional 15% of a home’s appraised value to the principal of a new loan or a refinance, often at no additional cost, no compromise in the loan-to-value ratio for the borrower, and sometimes at a better rate.” So if you are interested in installing solar on a home you are purchasing or building, or want to take out a mortgage for this type of project you should look at EEMs.

Credit unions and Community Development Financial Institutions (CDFIs) are other places to look for loans. Credit unions have a vested interested in providing capital to community members to increase the long-term growth and stability of their service region, and energy indepence is clearly a part of that mission. Whereas, CDFIs are intended to develop communities for a variety of reasons. You should certainly search for CDFIs in California that focus on energy development, particularly through the OnePacific Coast Bank.

Using Home Equity

Another way to fund your home remodeling or repair is through home equity loans or equity based lines of credit. These financial products can help you get the resources you need to make energy and money saving improvements to your home. Because most homes are fairly valuable, it makes a very good asset for securing the money these types of changes require. Home equity loans provide the money upfront in a lump sum, whereas a line of credit based on equity allows you to withdrawal money as needed.

New innovative financial products are supported by excellent customer service teams who are ready to help the consumer. Asking questions is absolutely free and could be the key to your energy independence.

Many of these financial products can be applied for online. After the application is submitted, a team of underwriters will review the application and respond quickly. Monthly payments on the loan total the principle plus the interest rates. Generally, funds from $10,000 to $100,000 are available it just depends on your need. There may also be federal tax credits or rebates for changes made to a home that improve its energy efficiency

Sacramento Residents Get a Special Rebate

The Sacramento Municipal Utility District (SMUD) program can also provide financial incentives for home improvements and appliance replacement that increases energy efficiency. These rebates specifically reward consumers who choose Energy Star products and other resource-decreasing upgrades. These rebates and financial products exist to help encourage homeowners to take an environmentally cautious approach to home improvement and appliance selection. SMUD also offer loans of up to $10,000 for business owners looking to invest in energy efficient technology; applications for such loans are considered on a case-by-case basis.

Although the initial cost of a change may be high, energy-efficient systems like solar power and other home upgrades are cost-effective in the long run, not to mention far better for the health of the planet. There are many financing options available to homeowners and businesses, and your local solar specialist can help you determine which improvements and resources are right for you and your home.

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