Q&A Spotlight: Getting a Fair Shake on a Green House
Green houses with extra insulation, active solar systems, and other features that enhance energy efficiency often cost more to build than conventional houses.
It’s a question of long term gain for a little bit more money up front. But builders and homeowners often hit a snag when it comes to construction loans and mortgages to cover the added costs. That’s the subject of this week’s Q&A Spotlight.
Appraisers who set values for bank loans may not know enough to give due credit for energy efficiency and green features. Even if they do, banks making the loans may not allow the practice.
Although local banks may prove more flexible, there’s no guarantee you’ll get the financing you need to build the house you have in mind even if you’ve been pre-approved for the loan.
Realtors know that green home features are worth something to buyers, but appraisers and lenders seem to be lagging behind.