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Green Finance: How to Take Advantage of Fannie Mae and Freddie Mac Green Lending Programs

YijunW CA, United States 0 Ratings 53 Discussions 0 Group posts

Posted by: YijunW

Green Finance: How to Take Advantage of Fannie Mae and Freddie Mac Green Lending Program

The Federal Housing Finance Agency (FHFA) gives green builders a financial advantage through Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are United States government-sponsored enterprise (GSE) and publicly traded corporations.

In November 2017, FHFA announced that 2018 multifamily lending caps would limit to $35 billion both for Fannie Mae and Freddie Mac, down from $36.5 billion in 2017. The good news for green business is, for 2018, FHFA is making the following changes to exclude loans to finance energy or water efficiency improvements. This means that green programs can walk around the cap freely.

For people who are interested in upgrading their home, they are eligible for multifamily loans if they save water or energy usage by 25 percent.

According to Summer Gell, there are lots of benefits of green financing.
Green finance established benefits include
1) preferred pricing
2) higher underwritten net operating income (NOI)
3) value (such as tenant and owner paid utility bill savings)
4) additional loan proceeds
5) energy study cost reimbursement (up to $3,500 for Freddie Mac and Cost of High-Performance Building Module for Fannie Mae)

To learn more, please visit
https://bit.ly/2wFjlQG
https://at.law.com/tqDJ79
http://rew-online.com/2018/06/07/green-guidelines-point-changes-multifamily-agency-financing/

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