According to a recent New York Times article, borrowers looking to make energy-efficient upgrades to their homes may soon find increased incentives for making green improvements that reduce their environmental impact.
Fannie Mae, the government-backed company that sets lending standards for mortgages, said it would unveil new incentives by this summer for those using part of their mortgages for energy-related improvements. Energy Star, a joint effort of the Department of Energy and the Environmental Protection Agency, is also expected to introduce borrower incentives in New York, after running pilot programs in Colorado, Maine and Pennsylvania.
These and other initiatives would expand upon and serve as alternatives to the energy-efficient mortgage option from the Federal Housing Administration (FHA), under which borrowers who obtain an FHA-insured mortgage are able to qualify for larger loans if they earmark additional funds for energy-related improvements that yield long-term savings.