An energy-efficient, or “green,” mortgage is designed to help you add improvements to your home to make it more environmentally friendly. The federal government supports EEM loans by insuring them through FHA or VA programs. “The key advantage of this mortgage is that it lets you create an energy-efficient home without having to make a larger down payment,” explains Hartman. “The extra cost is rolled into your primary loan. Some improvements you can make include installing double-paned windows, new insulation, or a modern heating-and-cooling system.
7. FHA Section 203(k) n 203(k)
For buyers interested in purchasing a fixer-upper, the Section 203(k) rehabilitation program may be a good fit. This type of FHA-backed loan considers the value of the property after improvements have been made, after which it allows you to borrow the funds you’ll need to carry out the project and includes them in your main mortgage. The down payment for this loan can be as low as 3%.
8. Native American Direct Loan
The Native American Veteran Direct Loan program, run by the VA, has helped Native American veterans and their spouses buy homes on federal trust lands since 1992. If you’re eligible, you don’t need to make a down payment or pay for private mortgage insurance.
9. Local Grants and Programs
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