Going Green Is a No Brainer
April 14, 2017
Our new green financing initiative for America’s workforce housing needs is making a real difference for borrowers, renters and the environment—with more than $4 billion funded since it launched last August.
Why go green? We think it’s a no brainer.
It makes financial sense
Better loan pricing and utility savings help a borrower recoup the cost of building improvements.
Borrowers automatically get a green quote when they apply for a loan.
A free property assessment* lists practical energy- and water-saving improvements. Order the report when you go under application, and our preferred vendors will get the assessment back to you within two weeks.
Borrowers have two years to make improvements—twice as long as the competition.
We hold a spread for 90 days so we take away the interest rate risk upfront (unlike the competition).
Seventy-eight percent of renters would rather rent “environmentally friendly”**
*Freddie Mac will reimburse up to $3,500 of the cost of the property assessment when a Borrower chooses a Freddie Mac loan.
** 2016 September Freddie Mac Renter Research, Poll Conducted by Harris Poll.
At a 430-unit property built in 1990 in Texas, a state facing a serious water shortage, water-saving improvements for $500/unit (higher than the $350 required minimum) resulted in a big return.
Low-flow toilets, efficient showerheads, and kitchen/bathroom aerators.
- 5 million gallons of water/year = 8 Olympic-sized swimming pools
- $105,000 in utilities in one year
Return on Investment (ROI)
- Full ROI in two years
- $1.1 million netted in 10 years