General Overview
There is a very significant amount of money that has been funded as a part of the American Recovery and Reinvestment Act (ARRA). Much of this money is designated for retrofitting the energy related components of our existing housing stock. It is hard for me to determine the specific breakdown for this funding but In California there is 110 Million in just one pool of this money.
The money can be used to support the efforts of the Real Estate Community in this Region and State to provide opportunities for buyers to improve the energy efficiency, reliability, and comfort of the houses they own. The amazing thing though, is that it can act as a homebuyer incentive in the process.
We already have programs like the Energy Efficient Mortgage (EEM) that allow buyers to include 100% of qualifying energy conserving upgrades into their purchase mortgage. We also have programs like the FHA 203K and the Streamline version of the 203K that allow much larger energy conserving packages to be included with the same 3.5% down on the package as the FHA loan it is incorporated into. (These options even allow measures that are not energy related to be included).
With the incentives that are being offered within the ARRA structure the buyers can actually incorporate these opportunities and qualify for substantial incentives. When combined with other opportunities currently available some buyers would even qualify for combined grants and rebates exceeding the Federal Homebuyer Credit, and make their home more comfortable, dependable, affordable, and energy efficient in the process.
There are some very specific considerations here. Primarily, the incentives are for upgrading the energy efficiency of their home. It is not the purchase of the home that triggers the incentive; it is the inclusion of energy retrofitting measures within their purchase process that triggers these rebates.
I am spelling out all of the necessary considerations and procedures to make this work on this site.
I will be showing you all of the ways to integrate the various programs, processes, and incentives to maximize the benefit to your buyers and create additional sales opportunities. I am calling this approach and structure the HERE model.
Sacramento 1st DBA Comstock Mortgage – Lic : 01390474
Kevin Nunn – NMLS 305826 / DRE 01158674
