Fannie Mae has unveiled a mortgage for borrowers who want to finance energy and water efficiency improvements to their homes.
The HomeStyle Energy mortgage, announced Wednesday, allows a borrower with a higher-interest energy improvement loan to roll it into a new or refinanced mortgage “more easily,” the company said. Borrowers generally will have options to finance new energy upgrades when purchasing or refinancing a home, it said.
“Borrowers who are purchasing a home and want to improve the energy efficiency on the property can now receive up to 15% of the as-completed appraised value of the home to use for the upgrades,” Fannie Mae said in a press release.
Borrowers “can finance up to $3,500 in weatherization of water-efficiency upgrades without having to obtain an energy report,” Fannie said.
The program can be used on one- to four-unit properties for approved Fannie Mae lenders. It is an extension of several options Fannie offers to reward green properties.