Energy Efficient Mortgages

This loan gives you extra cash to complete energy efficient improvements in your home.  This loan is similar to the FHA 203K streamline loan, which is a larger scale  rehab loan, but the EEM (Energy Efficient Mortgage) lends up to $8,000 maximum.  The 203K and EEM can be used together. 

Just in case you were not aware of this little program here is some information about the the Energy-Efficient Mortgage.
-Finance up to 15% of an existing home’s value or 5% of a new homes value
-The monthly energy savings are added to your income, to help you qualify
-There is a 3% minimum investment required by you, but rebates and other incentives from the governmanet may be applied toward your contribution.

Some items you can use the money for are:

• Windows and Doors
• Heating and Cooling
• Insulation

If you’d like to know more, contact me today.

Also, feel free to Share or Comment

Thank you,

Matt Steinmetz
Envoy Mortgage
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639

Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
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Contra Costa County, home loans, mortgages, Concord, CA, refinance, rahab loans, 203K, FHA 

FHA 203K Streamline

Here is a link to a flyer on this topic

The FHA Streamline 203K loan can be used on purchases or refinances.  This loan allows  you to get extra money above the payoff amount or cost of the home to handle repairs or upgrades.  This is great for buying fixer uppers or putting windows in your existing home, plus much more. 

Loan amounts can go up to the maximun FHA loan limits in your county.  For Contra Costa County that limit is $729,750.  The maximum for repairs is $35,000 but a portion of that is not available to you as it is kept as reserves and then returned to the bank if unused, which reduces the balance on your loan. 

The borrower gets 50% of the improvement proceeds at the loan closing and the other 50% after the repairs are completed.   The repair work can be financed over and above the contracted sales price or appraised value with the total being added to the final loan amount, up to 110% of the value.  Any repairs over $15,00 do require an inspection upon completion.

Let me know your thoughts on this by commenting below, and feel free to use the share button to pass this along.

Matt Steinmetz
www.mattsteinmetz.com

Unemployment up

Today the unemployment rate is at it’s highest since 1983, sitting at 9.5%. The US has now seen the biggest drop in jobs since post World War 2, with about 6.5 million jobs lost since the recession began in December 2007.

This is not all doom and gloom as this should help mortgage rates improve along with the fact that the Dollar is getting stronger and oil prices are going down again. Oil prices going down pressures the entire stock market to sell off, and we know from earlier posts that when stocks sell off, that money usually ends up in bonds. This also helps rates improve.
With that said, where the bond market is today, the last time it sat here it reversed for the worse. Since rates are tied to the bond market, we certainly hope this doesn’t happen again. With the markets closing early today and closed tomorrow, a sell off would not be uncommon. You can see why it is impossible to know what rates will do, so many factors involved.

Watch for my next post about the FHA 203K laon for rehabing or repairing your home, or a home you want to buy.

Matt Steinmetz