Although funds for eco-friendly homes have been available for quite some time, still, in recent years, the options available have increased. At first glance, it can be a bit confusing trying to figure out how to best approach such financing but if you understand the factors behind them, then things should be much clearer.
The first thing that you need to determine is the nature of the financing that you’re trying to secure. In particular you could be:
- Purchasing an eco-friendly home
When you’re purchasing an eco-friendly home, you are likely to want to look for loans and mortgages that provide incentives for doing so. Because these homes are more energy-efficient, it is assumed that you will be paying far less on utility bills and the difference can then count as income instead. Because of that mechanism, lenders may offer additional credit, better interest rates, or even allow you to secure more financing than your income would otherwise permit.
- Carrying out improvements to make a home more eco-friendly
Improving a home to make it more eco-friendly is a fairly diverse area that could include renovations to make it more energy efficient, switch to energy-efficient appliances, and a slew of other improvements. For such purposes, it is possible to find mortgage lenders that will let you take out special green mortgages or energy-efficient mortgages – provided part of it…