The SECU offers "green" mortgage financing on new homes that receive an ENERGY STAR rating as well as for construction financing of homes which will be built to ENERGY STAR rating standards. This financing differs from standard mortgage financing through lower origination fees and less stringent qualifying guidelines. "Green" second mortgage loans allow interest rates up to 2.5% lower when the proceeds are used to finance energy efficient home improvements.
The top benefit that these green lending programs offer to members is cost. The origination fee for "green" mortgage loans is capped at $350, for example on a $200,000 loan this can result in a savings of as much as $1,650!
"I feel that the demand for more energy efficient
housing will increase."
Another benefit is that the increased energy efficiency of these homes results in lower housing costs, the borrowers have more residual income and are less likely to default on the mortgage. The mortgage lending industry market should recognize the benefit of this type of collateral as compared to other homes in the market that may be less energy efficient.
Spencer added that members are increasingly asking about "green" lending programs, but they would like to see the demand increase further. To find out more about the Green Mortgage and Green Second Mortgage programs, visit the SECU website at www.ncsecu.org.
The idea of Green Mortgage is indeed brilliant. If only I could lend , then I'd choose this program.
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Green lending programs of The State Employees' Credit Union will allow home owners to experience low cost house financing. This is the best way to encourage home owners to build homes certified with Energy Star.
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