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Green mortgages do exist, but what exactly are they? Green mortgages are an environmentally friendly type of home loan. How do you make a mortgage environmentally friendly; you might ask? Green mortgages, also known as Energy Efficient Mortgages (EEM), are a special type of loan designed to make your home more energy efficient while saving you money at the same time. Interesting, right?

How Do Green Mortgages Work?

These loans help you borrow money to pay for energy efficient upgrades to your home. The cost can be added into the mortgage or rolled into your current mortgage through an energy efficient refinance to allow you to make improvements to your current home. It’s an affordable way to make upgrades that may be costly up front, but in the long run will save you money.

What Can You Use Energy Efficient Mortgages Towards?

Whether you're a homeowner looking to improve your current home or are shopping for a home to purchase, you can use an EEM to make energy-efficient improvements. Changes you make to your home can improve energy efficiency and lower heating/cooling costs. An important bonus: These improvements can add to the value of your home.

  • Installing Double-pane windows
  • Replacing outdated air ducks
  • Replacing old insulation
  • Tankless water heaters
  • High Efficiency Furnace or Air Condition System

Can a Green Mortgage Reduce Your Home’s Carbon Footprint?

According to the Center for Climate and Energy Solutions, the average U.S. family can spend $2,000 a year on energy bills, which means reducing your home energy use is the single most effective way to save money and reduce your home’s contribution to climate change. In fact, here are some interesting statistics to think about:

  • You can save 10% on energy costs by insulating, sealing, and weather-stripping the cracks around your windows and doors. 

  •  By sealing and insulating the ducts in your heating system, you can improve efficiency by as much as 20%.

  • According to the Department of Energy, energy loss from outdated windows accounts for nearly 25% of the annual heating and cooling costs for the average American home.

  • New energy-efficient heating or cooling equipment can cut your energy use by 20% or more.

  • The Environmental Protection Agency reports that you could save roughly $180 a year by using a programmable thermostat. 

Overall, EEM’s allow families to save money, help the environment and help you to live more comfortably. Energy efficient homes tend to be cooler in the summer and warmer in the winter, cost less to maintain and have lower utility costs.

What Types of Green Mortgages does Greenway Offer?

Greenway Mortgage is proud to introduce our Green Mortgage Program that helps homeowners add energy efficient features to their home. Take a look below at the two types of EEM’s we offer:

FHA Energy Efficient Mortgage

This type of EEM provides additional financing that equals the lesser of 5% of the home’s appraised value, 115% of the median area price of a single-family dwelling, or 150% of the national conforming mortgage limit in the area. Click here to view the current FHA Loan Limits.

Contact Greenway Mortgage for more information and to see if you qualify.

VA Energy Efficient Mortgage

Military members, veterans, and their families who want to go green in their homes can do so with a VA Energy Efficient Mortgage. If the borrower is planning on making energy-efficient upgrades in the home, they have six months following the closing of their loan to complete those projects. If the borrower hopes to purchase a home that is already energy-efficient, the lender may increase the loan by as much as $6,000, so long as it meets specific energy-efficient standards.

For more information regarding the VA EMM and to see if you’re eligible, reach out to Greenway Mortgage.

Who Is an EMM Designed For & What Are Some Benefits?

  • Anyone can qualify for an energy efficient mortgage. However, the lender must validate that your home is an energy efficient property or that the improvement projects you want to pursue to make it an energy-efficient property are cost-effective.

  • An EEM can benefit those who hope to make a competitive offer on a house. Not only will the financing fund the energy efficient upgrades, but it can increase their offer price to beat out other buyers.

  • If you’re someone who intends to own your home for many years, EMMs make sense as you’ll be able to reap the savings benefits.

  • If you want to increase the value of your home energy-efficient upgrades are key. Some home buyers will pay more for a house with green updated features.

  • If you’re a homeowner with an energy-efficient home, you may be eligible for tax credits and rebates. Consult with your tax advisor for more information.

Bottom Line

If energy efficiency is important to you, a Green Mortgage may be something to think about as it reaps many homeowner benefits. For more information and to see if you quality for our Green Mortgage Program reach out to the experts at Greenway Mortgage.

Get A Free Mortgage Pre-Approval


The thought of buying a home on your own as a single home buyer can be intimidating. If you’re making this leap, it’s going to take careful planning and the right team of experts.

Research from Freddie Mac shows 28% of all households (36.1 million) are sole-person, and that number is growing. Over the past 40 years, the number of sole-person households has nearly doubled, and that’s a trend that’s expected to continue as more and more Americans choose to live alone.

Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”

Do you fall into this category? Here are three tips to help you achieve your homeownership goals.

#1 Know Your Credit Score

When you buy a home on your own, you must qualify for your loan based entirely on your finances and credit history. Mortgage lenders will look at your credit profile only so it’s a good idea to review your credit report in advance.

Answer this question here to help you better understand where you may currently stand.

Do you have established credit?Credit Score

Yes: Great! Keep making those payments on time. Avoid applying for more credit as it will lower your credit score. Every point counts!

No: Start building your credit now. A credit card or secure loan is a great option. But the length of history is important followed by the amounts you owe.

Find out what your score is and see where it falls. If you’re not sure if it’s strong enough or where to focus your energy to improve it, meet with a professional for expert advice on your situation.

#2 Explore Down Payment Options

Your next option is to investigate down payment mortgage programs so you can get a feel for what you’ll need to save to buy a home. Greenway Mortgage offers a variety of down payment programs and first-time homebuyer programs. We’ll see which program best suits your personal needs.

Check Out Some Of Our Programs Here:

#3 Think About Your Future Home and Your Needs

What is it that you want in a home? Here are some questions to ask yourself:

  • What type of home do you picture yourself living in?
  • What are your wants and needs in a home?
  • How many bedrooms and bathrooms do you want?
  • Do you need extra space for a home gym, a home office, or for entertaining>?
  • Do you want to live in a detached home, a condo, or a townhouse?

While buying a home solo can feel like a big challenge, it doesn’t have to be. If you lean on the professionals, they can help you navigate these waters and make sure you’re able to take advantage of the great opportunities in today’s housing market (like low mortgage rates) to buy your dream home.

Bottom Line

The share of sole-person households is growing. If you’re looking to buy a home on your own, be confident that the dream is achievable. When you’re ready to begin your search, work with the experts at Greenway Mortgage so you have advice each step of the way.


 

Helpful Home Buying Resources

Check out some of our home buying resources here:

Free Pre-Approval


  • Surging food, energy, and shelter costs pushed consumer prices up 8.5% in March, slightly hotter than expected and the highest since 1981.
  • The prices that goods and services producers pay also rose. Wholesale inflation hit 11.2% in March, the biggest gain on record.
  • New unemployment applications remained near historically low levels, as employers held onto workers in a tight labor market.

  • Large investors have increased cash flow to devote to housing, having accumulated $89 billion for building or buying rental homes.
  • Housing inventory is up 8.3% since its seasonal low in March. Inventory remains 65.1% lower than the same week in 2020.
  • As fixed mortgage rates surge, applications for adjustable rate mortgages have increased and now make up 7.4% of total applications.

 

 

Advice For the First-Time Home Buyer

Apr 12
6:25
AM
Category | General

Are you a first-time home buyer or thinking about buying a home soon? Greenway Mortgage wants you to feel ready and prepared for the biggest, most exciting purchase of your life. We put together some questions for you to answer so that you can see where you stand currently. Go through and answer each and at the end, if you feel confident and ready, reach out to the team at Greenway Mortgage.

Alright, here we go!

#1 Do you have established credit?

Look below to see where your credit score falls.

If you answered yes, keep making your payments on time. Do not apply for any more credit as it will lower your credit score. Every point counts.

  • Excellent Credit Score: 720-850
  • Good Credit Score: 690-719
  • Fair Credit Score: 630-689
  • Bad Credit Score: 300-629

If you answered no, now is a great time to start building your credit. A credit card or secure loan is a great option. But length of history is important followed by amounts you owe.

#2 How About Your Job?

Two years of employment history is a good rule of thumb. Greenway Mortgage will look at your documented income such as paystubs, tax returns and W2’s.

#3 Have You Been Saving?

You will want to decide how much of a down payment you plan to put down. Keep in mind, that there will be other fees at closing in addition to your down payment. Closing costs can includes fees like:

  • Appraisal
  • Attorney
  • Home Inspection
  • Credit Report
  • Escrow
  • Title
  • Private Mortgage Insurance
  • Property Tax
  • Recording Fees
  • Underwriting & Processing Fees 
  • And more

#4 How Much Can You Afford?

It's an important step to determine how much house you will be able to afford. With that said, there is a general rule of thumb that says your total monthly debt – mortgage payments, car payments, credit cards, gas, utilities, etc. – should not exceed 36 percent of your gross monthly income. Lenders typically follow a similar guideline when a qualifying a borrower for a mortgage, although the exact criteria depends on the lender, the borrower and the mortgage program.

The lender qualifies a borrower for a maximum monthly payment that they can afford based on the borrower’s current financial situation, as well as the down payment amount. Remember, your monthly mortgage payment includes PITI – principle, interest, taxes, and insurance. 

Second, just because you qualify for a certain monthly payment, that doesn’t mean you should purchase a home that puts you right at that limit or anything close to it.  “But wait,” you say. “I’ve crunched the numbers in my monthly budget, and I have no doubt that I can swing that payment with plenty left to spare!”

Are you sure about that?

Do you plan to have kids? Will they go in daycare? If you plan to stay home with your kids, how much income will you lose? Will you start saving for their education? Do you plan to buy a car within the next five years? Would you like to go on vacation? Will this home you’ve fallen in love with require any improvements?  In other words, if these or other life events add significantly to your monthly expenses, will you still be able to swing that mortgage payment? Many first-time home buyers become house poor because they buy based on today and fail to consider where they’ll stand tomorrow.

The Better Question to Ask

First-time buyers constantly come to us and say, “How much house can I afford?” Unfortunately, we can’t answer that question with any certainty. We can only tell you how much of a monthly payment you qualify for. The better question to ask is, “How much should I buy?” Again, the lender can’t answer that question. That’s a personal decision you must make based on your income, lifestyle, family situation, and priorities, both now and in the future.

There is no mathematical formula that tells you exactly how much home you could afford. However, Greenway Mortgage will take the time to discuss these issues with you instead of simply approving you for a mortgage and wishing you luck.

#5 Did You Know There are First-Time Home Buyer Perks?

Greenway makes buying for the first-time easy! Check out some of our First-Time Home Buyer Programs here.

You Can Check out all our First-Time Homebuyer Resources here.

First Time Home Buyer Guide

Want to feel prepared before making the leap into homeownership? If so, this eBook is for YOU! You’ll learn how to navigate the entire process from pre-approval to closing and beyond. Click here for your free First-Time Home Buyer Guide.

#6 Feeling Good About Homeownership?

If you’ve made it this far and feel confident, it’s time to schedule an appointment with one of our Loan Experts. Otherwise, hopefully you now know some things you may need to work on based on your current situation. Either way, homeownership is possible!  There are many options available to fit your specific needs and the Greenway Team is here to help guide you ever step of the way.

Best of luck on this journey to becoming a homeowner!


  • Minutes from last month's Fed meeting show a consensus to start reducing balance sheet holdings by $95 billion a month, to be announced in May.
  • Fed members also support multiple half point policy rate hikes this year. Along with balance sheet runoff, this supports higher mortgage rates.
  • Economic signals such as an inverted yield curve for long- and short-term Treasuries point to a possible recession to come in 2023.
 

  • Higher mortgage rates have pushed refinance applications down 41% from a year ago, but purchase apps were down just 9% due to tight inventory.
  • According to realtor.com, buyers are paying about 30% more for a house than they would have a year ago due to higher sales prices and rates.
  • Among home projects, a new home office and hardwood floor refinishing brought homeowners the most joy, a recent NAR/NARI survey found.


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