There is special financing available if a house fits certain green criteria. This could be an energy star boiler or the type of insulation. There is also financing available to make a house greener.
The following list are guidelines when discussing eco friendly financing with mortgage lenders. It is a Value-Based Analysis (VBA) for Green Financing.
VBA is a decision table that relates the needs of the customer with the specific resources available in the market place. VBA asks a series of critical qualifying questions to determine what is needed and what resources are available to meet those needs.
Is this property a good candidate for energy upgrades?
Does this property have a history of green certification?
Does this property have a current energy rating?
What is the probable amount of the loan? (Above or below $417K?)
What is the list of upgrades or retrofits that your clients would like to accomplish?
Have you done any green financing?
How many green financing loans have you closed this year?
How many green financing loans do you expect to close in the next one, two, three, and four Quarters?
Which specific green financing products have you closed?
What is the range of loan sizes you have closed with green financing?
What is the average length of time each of these has taken?
How did you work through any challenges that arose during any of these deals?
Do you have specific energy rater relationships?
Is there a specific green financing product in which you specialize?
Use these questions first to characterize your current resources and to determine how well certain green financing products and/or certain lenders will be able to meet the needs of your buyers and sellers.