Green Home Lending

[Craig Grella]

I recently wrote an article about how lenders need to educate themselves on more green building features, and how an energy efficient home is worth more than its non-green counterpart.

There have been several studies culling through recent data from MLS records across the country pointing to evidence showing that green homes sell for a premium of as much as 7.5% more than comparable non-green homes, but lenders are not yet taking these features in account when valuing these properties.

For those interested in helping to bring about a change in those lending practices there is a new designation called the green lending specialist designation. I'm not in any way affiliated with the course or do i derive any income from it, rather I think it is courses like this that will eventually bring about a change in the way to look at and value green property, and eventually the way lenders make loans for such properties.

Read more about it at http://www.examiner.com/examiner/x-23548-Seattle-Commercial-Real-Estate-Examiner~y2009m9d14-Green-lending--the-future-of-real-estate-finance.

Most of the lenders i've seen advertise green loans really aren't doing anything special. They seem to be capitalizing on the term "green" without really offering any special rates that you couldn't get on a non-energy efficient home.

I'd love to get comments from people who have been involved with green building from the lending side of things.

I think its going to be a great area for creative financing in the years to come.