Home Loans and Mortgage Rates
Financing Real Estate Purchases
Most real estate purchases are financed. The type of financing and associated costs depends on the qualifications of the buyer and the property, the type of home being purchased and the current mortgage market conditions.
E3 Green Homes has successful working relationships with a number of mortgage bankers, who together can offer a wide-range of financing solutions. E3 Green Homes has considerable experience working with lenders and buyers on Federal Housing Administration (FHA) and Colorado Housing and Finance Authority (CHFA) loans. Visit our Links Page to learn more about our preferred lenders and other financing options.
There are four categories of financing to consider.
1) Conventional Loans (including both insured and uninsured): These loans are available from a variety of traditional lending institutions including commercial banks, mortgage bankers, insurance companies, real estate investment trusts, and savings and loan associations. Loan amounts may vary but are typically around 80% of the appraised value of the property. Loan amounts may be as high as 95% of the value if private mortgage insurance is added.
2) Government Insured Loans: Federal Housing Administration (FHA) and Veterans Administration (VA) loans are the two most common types of loans in this category. Although the loans actually originate with approved mortgage lenders, they are insured by the federal government. The amount insured is determined by government policy which is influenced by current market conditions.
3) Energy Efficient Mortgages (EEMs, a.k.a. Green Mortgages) are another category of financing rapidly gaining in popularity. These loans allow energy-efficient homebuyers to qualify for larger loan amounts due to the increased income realized from lower operating costs. EEMs are offered by federally insured programs like FHA and VA in addition to conventional secondary mortgage market programs including Fannie Mae and Freddie Mac.
4) Private Financing: This type of financing is more common among real estate investors. Private individuals with cash or retirement funds earning low interest rates are able to loan money to other private individuals for the purchase of real estate. Private lenders can earn fixed rate double digit returns which far exceed conventional investment alternatives such as bank savings accounts, CDs or stocks and bonds. See our Investor pages for more information about private lending.
Visit our Mortgage Options page for information on Mortgage Options and How to Get Started. We also encourage you to take advantage of the many finance tools and Resources on this site to help you learn more about what choices may be available to you. Contact Us at any time with any questions or comments about your specific needs or requirements.