Almost everything comes with a greener option nowadays: makeup, appliances, engineering systems, and more. In an effort to save the environment, organizations provide “greener” options to their clients.
Included in that list is Fannie Mae, the leading provider of mortgage financing in the United States.
Fannie Mae’s Multifamily Green Initiative provides loans for properties investing in cost-cutting, energy efficient, and environmental friendly lifestyles and improvements. The program offers a 5% increase on all loan proceeds, plus a 10 basis points (bps) reduction in interest rates.
So how is this better for multifamily lending?
The Type of Loans for Green Multifamily Properties
Fannie Mae’s Green Rewards provide bonuses for green improvements through additional loan proceeds and lower prices. Also, there are no restrictions to the loan’s amount or term. Owners who wish to improve their property after a loan closes can rely on the program’s other offerings: acquisition, refinance, and supplemental loans.
Should You Go Green?
Tracking water and energy costs over time saves more money and guarantees more improvements. On average, most commercial buildings waste 30% of energy; when you transform multifamily investment properties into greener assets, you gain that 30% back.
Some apartment owners charge higher rates to keep up with the rising costs of energy and water. The expensive rent combined with inefficient systems easily dissuades potential tenants. With greener options, however, it’s easier to minimize (or totally eliminate) unnecessary expenditures due to wasted energy.
Your Smartest Upgrade
Fannie Mae’s Green Initiative has an extensive selection of loans for multifamily property owners undergoing green renovations.
To get a loan, applicants should agree to use part of the proceeds to energy-efficient improvements. The loan covers retrofits and upgrades necessary for electricity-saving systems, energy-efficient equipment, and the like.
While a greener movement should be a lifelong pursuit, all environmentally-friendly improvements should be applied within a year. Throughout this period, property owners should track down their total energy and water costs.
Going green has never been this interesting. Do your part for the environment and make the most out of your investment with Fannie Mae’s Green Initiative today.