by Stacey May
on Thursday, February 11th, 2010 at 5:16pm.
The other night I had a nice chat with Matt Verdi of Prospect Mortgage about Energy Efficient Mortgages and 203k loans. From last night to this afternoon Matt was able to get the new Energy Efficient Mortgage guidelines passed through his office's underwriters and is now ready to help his customers take of full advantage of this incredible financing tool. I'm blown away that it was as easy as it was for his office to make the switch, but because Prospect Mortgage is a direct lender with in house underwriting, it really didn't take much for Matt to get his office's EEM guidelines updated.
The updated EEM which is not capped at $8,000 like it has been for approximately 30 years now offers a maximum amount of the cost of the energy efficient improvements that may be added to the base mortgage amount is up to the least of the following... • 5% of the value of the property • 115% of the median area price of a single family dwelling • 150% of the conforming Freddie Mac limit
For those who are cash strapped and still praying for AB811 type programs to hit their city, this loan is perfect tool to obtain cost effective energy improvements now! This loan can be used to purchase a new home or refinance the home you're in now.
Are you a mortgage broker and interested in offering this product yourself? Jana Maddox of CHEERS® is an excellent resource to help your office get on board with this valuable financing program.