Editor’s Note: Appraisers and Home Inspectors are catching the energy-auditing wave- diversifying and adding to their bottom lines.

Shining Light on Energy Auditing
by David Brauner, Editor         

As environmental concerns among Americans reach a tipping point- saving our planet, becoming energy independent, saving money on the soaring cost of energy- appraisers, inspectors and others are diversifying their incomes by adding energy rating/auditing to their list of services.
 

Money Talks- Lender Incentives
Environmental concerns are an important driver but money is a powerful motivator. A number of lenders and government agencies are offering mortgage deals to people who borrow money to make their homes more efficient or who buy homes that already meet high efficiency standards. Some offer discounts of $500 or more on closing costs for a refinance or new mortgage. Other plans offer a lower interest rate on the loan, sometimes a half-point or more below the current market rate.

Some programs factor in potential energy bill savings into qualifying income, which may allow people to borrow more money. Even minor efficiency upgrades can bring hundreds of dollars a year in savings and potentially help people qualify for a bigger loan.

First: Energy Audits
The American Clean Energy and Security Act of 2009, which passed the House in June 2009, includes provisions designed to encourage energy-efficient housing. Among other things, the bill requires Fannie Mae and Freddie Mac to offer incentives to get more borrowers to use energy-efficient mortgages.

To qualify for these plans, the first step is generally an energy audit. If borrowers are buying a new home, it must meet certain efficiency standards, often the federal government's Energy Star benchmarks. If they're looking for a refinancing or second mortgage, they must agree to reduce their current energy usage by a certain amount through upgrades like buying new appliances or insulation. The cost of the upgrades is bundled into the mortgage, and buyers pay it back over the life of the loan.

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