I was reading a fellow WCR members blog here on active rain.  Angie Ridley on "Green Lending" and was so excited to hear about this program.  I decided to do my own research and find out how this is done here in Grand Rapids. 

Energy efficient lending is a good way to make home energy efficient while buying a new home or refinancing.

Here is the scoop:

Once you have found a home you want to purchase (or decide to re-fi) you need to let your lender know this is the program you want to use. 

When the appraisal is being done, this is generally when the energy efficiency home inspections are done. 

The energy home inspector will conduct a series of test and give you a written report of what should/could be done to make your home energy efficient and estimated cost on the repairs that need to be done. He will also give you an estimate on your savings per month on your utilitie bills if you do the work.

The lender will now add this amount to the home loan and request a loan amount for the total......... purchase price of the home and the repairs.  The home has to appraise for at least this amount.

Once this is done, a certified energy efficient contractor will bid the job.  (You can get several bids).  Now you have true numbers to work with and the loan amount is adjusted. 

After closing, the repair money is held in escrow at the title company to be paid out to the contractor once the work is done.

Some facts and links about Energy efficient lending:

Local Energy Efficient Inspector

North Point Bank- Jeff Brom - Jeff has done several of these loans.  North Point not only provides this loan service but they live it.  They are the 1st LEED Certified building in Grand Rapids, Michigan.

Jeff says this does not take any longer then any other loan, he can get it done in 6 weeks and he can do this program with FHA or a Conventional 5% down loan.  They also portfolio loans for the right person.

Your debt to income is little different because they take in concideration your savings, and consider this income!

Jeff's Email - jeffb@npbank.com

DTE Energy rebates - Yes you can also get a rebate from DTE for making your home energy efficient.

Information from HUD on Energy efficient loans.

Tax Credits for energy efficient homes.

Energy Star information....................get the scoop on what product qualify.