• Home
  • Blog
  • Contact
    • Location
  • About
    • Brittany Armenta
  • Search the MLS
  • Sell
    • Sell My House
    • What’s My Home Worth?
  • Buy
    • Search the MLS
    • Home Buyers Guide – How to Avoid Costly Mistakes When Buying a Home
    • Frequently Asked Questions of Home Buyers
  • Reviews
    • Leave Your Review
  • FAQs

Guthrie Group Homes

Real Estate

Call Guthrie Group Homes, Real Estate at (925) 628-2436 | DRE #01117537Guthrie Group Homes, Real Estate - Keller Williams East County
Real Estate - Home » Blog » Home Improvement » Clean Energy Loan Warning

Clean Energy Loan Warning

December 16, 2015 By Ken Guthrie Leave a Comment

It’s so true that as the old saying goes “the devil is in the details!” The rush to solar and other energy savings schemes has spawned lots of opportunities and pitfalls for homeowners. Often times something that looks awfully good ends up being a terrific headache.

We’ve written in previous newsletters about the dangers of leasing a home solar system. One of the consequences could be to wreck your chances of selling the home down the road. (This article was in our 4/21/15 newsletter).

We’ve also written about ways to purchase solar systems and other energy savings options like insulation upgrades, new energy efficient heating and air conditioning systems, etc. through the use of special borrowing programs such as “CaliforniaFIRST, PACE,” etc. (This article was in our 5/10/15 newsletter).

The idea of this article was purchasing your solar system rather than leasing it would eliminate the dangers of selling the home. In theory, that was right. In reality, it could be very wrong.

The detail is in how you buy that solar system, HVAC system, etc. Using the special borrowing programs noted could still land you in great difficulty when you want to sell your house later. These loan programs were authorized by the state and are paid off as a special assessment on the property. They are paid monthly wrapped into the mortgage payment. They are structured by the state to be paid off first if there is a foreclosure.

This detail is not acceptable to the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac. Their loans must be ahead of these assessments and paid before them if there is a default. What this means is that if a buyer for your house wants to get one of these mortgages, which are the great majority of all mortgages, the loan will be denied.

This is happening more and more often now. The poor sellers are put in the position of paying off the assessment balance in full before they can sell the house.

The lenders and state and federal entities involved here are “talking” about ways to fix this problem. But if they do anything, it will not be soon.

If you are thinking about doing one of these types of loans and there is a possibility you might want to sell anytime during the life of the assessment, we strongly urge you to be very careful and investigate very thoroughly before making your decision.

For a more in-depth discussion of this issue and examples of real-life effects on some home sellers, go to this Wall Street Journal article; Clean-Energy Loans Make for Messy Home Sales or if you’re not a subscriber, just Google “Clean-Energy Loans Make for Messy Home Sales” and click the first link in the results.

If you have already done one of these and cannot figure out how it is structured, call Libby at 925-628-2436. She can look at the details of the loan and let you know what you’ve got.

Share
Tweet
Pin
Share
Pocket
Buffer
0 Shares

Filed Under: Home Improvement Tagged With: Solar Energy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Find Us on Social Media

Facebook
Facebook
fb-share-icon
Instagram
Pinterest
YouTube
YouTube
LinkedIn
LinkedIn
Share
Twitter
Follow Me

Our Most Popular Content

  • First-Time Home Buyer TipsFirst-Time Home Buyer Tips I’ve put together 15 First-Time Home Buyer Tips for you
  • Trilogy at Rio VistaTrilogy at Rio Vista Over 55 Community Have you been thinking about moving to a senior
  • A Homeowners Guide to Home Insurance A Homeowners Guide to Home Insurance Does Your Insurance Cover That? No one likes to
  • Real Estate - Home » Blog » Real Estate » You Just Listed Your Home, Now What? You Just Listed Your Home, Now What? You Just Listed Your Home, Now What? While listing and selling your home can feel
  • What $500,000 Will Buy You In Brentwood, CA vs. San Jose, CA What $500,000 Will Buy You In Brentwood, CA vs. San Jose, CA OK, we all know that buying a home
  • How Much Is My Home Worth? How Much Is My Home Worth? Get a FREE home valuation from expert

Blog Topics

  • FAQ's
  • Financing
  • Home Buyers
  • Home Improvement
  • Home Sellers
  • Homeowners
  • Libby and Ken Recommend
  • Local Communities
  • Page
  • Real Estate
  • Seasonal

guthriegrouphomes

Libby Guthrie
Keller Williams Realty
Knoxville, TN
Office: 865-966-5005 ☎
Cell: 865-364-0200 📱
Good People, Great Homes! 🏡

Guthrie Group Homes Knoxville
The Vulnerabilities Caused by Policy Denials⁣
⁣
Facing the insurance crisis might seem daunting, but there are alternatives for new homeowners.⁣
⁣
Exploring different insurance providers and coverage options can reduce the risk of denials and tailor solutions to individual needs.⁣
⁣
By researching and comparing insurance providers, homeowners can discover policies that fit their specific requirements and decrease the chances of denials.⁣
⁣
Link in Bio⁣
⁣
#realestatetips #insuranceadvice #knoxvilletn #tennessee #homebuyertips #homeownertips ⁣
#instagramtennessee #knoxville #govols
Load More... Follow on Instagram

Hours & Info – Guthrie Group Homes, Real Estate

Location
191 Sand Creek Rd #100,
Brentwood, CA 94513

Contact Us
info@guthriegrouphomes.com
Office: (925) 628-2436

Broker:
Keller Williams East County

Real Estate License
Lic #01117537

Hours
Monday - 9AM–5PM
Tuesday - 9AM–5PM
Wednesday - 9AM–5PM
Thursday - 9AM–5PM
Friday - 9AM–5PM

Weekends by Appointment
Call (925) 628-2436

See Location

Real Estate Menu
How We Market Your House
Home Search
Blog
Sitemap
FAQs

Search Here

  • Home
  • Contact
  • Location
  • About
  • How Much Is My Home Worth?

Copyright © 2023 · Guthrie Group Homes, Real Estate · Lic #01117537 · 925-628-2436 · Brentwood, Antioch and Oakley, California · Log in

If your home is currently listed or you are a buyer represented by another real estate agent, this website, article, or blog post is for informational purposes only.

It is not our intention to solicit the offerings or clients of other real estate agents or brokers.

All information on this site is deemed reliable, but not guaranteed.

Terms of Use  |  Privacy Policy | Advertising Policy | Accessibility