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How to Save Money on Home Improvements by Going Green

If you're preparing for a home purchase or you're planning to refinance your current mortgage, you're probably researching ways to cut costs and save additional money on your home loan.  If not, you should be.  There are a number of different cost saving options available both to first time home buyers and to current homeowners.  You can often save money and improve your living situation through unique financing options sponsored by government entities.

One such program is the new PowerSaver program, which was recently introduced as a way for homeowners to fund energy efficiency upgrades to their homes.  This financing option provides homeowners with up to $25,000 at fixed interest with minimal fees and closing costs.  These funds can then be used to make environmentally friendly home improvements.

There are several requirements that you must meet in order to qualify for this unique form of financing.

1.  You must have a good credit score.  This is essential.  Though the credit requirements for the PowerSaver program aren't as strict or stringent as the credit requirements for traditional mortgage loans, you'll still need to prove that you're a good lending choice for a bank or lender to work with.  If you can't do this with your credit score, you likely won't be able to take advantage of this specialized form of financing.

2.  You must live in the home you plan to improve.  Unfortunately, these funds can't be used by investors to bolster the values of investment or rental properties.  The home must be your primary residence.  If it is, you're good to go.  The home cannot be a condominium, either.  It must be a detached single family home.

3.  You can't be underwater on your home.  You must have positive equity.  There isn't an exact amount of positive equity required, but you need to owe less on the house than what it's worth.  Lenders want to see this in order to be certain that they are investing into a home that is worth investing in.  This is true of any mortgage loan, but it's especially true when the loan will be used for home improvements, as the only value that these improvements offer comes in the form of increased equity.  A home without adequate equity won't make a good candidate for this program.

To learn more about PowerSaver financing options, contact your lender today.

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