Special loans help homeowners make efficiency upgrades

Posted by Wyoming Real Estate

August 19, 2008

CHEYENNE, WY - August 19, 2008 - (RealEstateRama) — Loan programs for Wyoming homeowners can help alleviate the cost of energy efficiency improvements such as installing attic insulation, replacing inefficient furnaces and adding storm windows and doors.

Two programs in Wyoming are aimed specifically at helping homeowners pay for energy efficiency upgrades. One of the programs qualifies homeowners based on income, while the other program is available to all homeowners regardless of income. Both programs help homeowners reduce their energy use.

The Wyoming Energy Savers Program, designed by the Wyoming Community Development Authority (WCDA), is a statewide program that offers second mortgages to income-qualifying homeowners. The loans are either deferred - coming due at the sale of the home - or amortizing - meaning they behave like regular mortgages with small payments due each month. The loans can be used to pay for cost-effective energy efficiency improvements like furnace replacement, ceiling insulation, storm windows and exterior door installation.
•   Wyoming Energy Savers loans are available today to eligible homeowners through many local banks, credit unions and participating lenders, even if the home wasn’t financed through the WCDA.
•   To qualify, applicants must be at or below 80 percent of the U.S. Department of Housing and Urban Development’s area median income. This amount varies by county. In Laramie County, a family of four would need to make $50,080 or less to qualify. In Niobrara County, a family of four would need to make $48,000 or less.
•   Loans range from $1,000 to $7,500.
•   Depending on income, homeowners can get an amortizing loan at 4 percent interest for up to eight years with a maximum monthly payment of $91.42. Or, they can get a deferred-until-sale loan that requires no payments until the sale of the home.
•   The streamlined application process is quick and doesn’t require a high credit rating. Borrowers must be current on their monthly mortgage payments, real estate taxes and homeowners insurance.
•   Loan applications can be downloaded,at: www.wyomingcda.com and should be completed before visiting a lender.
•   For a list of participating lenders or for information, call 307-265-0603.

Starting October 4, 2008, the Wyoming GEOSmart loan program will deliver lower-interest, unsecured financing with extended terms covering most energy efficient home improvements, including heating and air conditioning, insulation, window replacement, water heating and whole house home performance measures such as air sealing and duct repair. This is also a statewide program available to all Wyoming residents.

“The loans are cheaper than a credit card in most cases, easier to get than a second mortgage, and typically pay for themselves in energy savings,” said Tiger Adolf, executive director of the Wyoming Energy Council. “It is a win-win opportunity for the consumer concerned about controlling rising energy prices.”

Bruce Matulich, executive director of the Electric & Gas Industries Association said often the savings in energy costs are greater than the monthly loan payment. “The customer actually has more pocket money at the end of the day,” he added.

•   The Wyoming Home Performance Alliance partnered with the Electric & Gas Industries Association to bring GEOSmart financing to Wyoming homeowners through certified contractors.
•   Homeowners can borrow $2,500 to $50,000 for up to 20 years at below-market interest rates.
•   Certified contractors in the Wyoming Home Performance with ENERGY STAR program first perform comprehensive home assessments. They evaluate how heating, cooling and insulation in a home work together and then develop a plan to create whole-house, year-round comfort while protecting the health and safety of the occupants.
•   Contractors then help homeowners complete the application for the Wyoming GEOSmart loan and get over-the-phone approval.
•   Contractors work with homeowners to finance and install the necessary improvements. Benefits derived from the improvements include increased home affordability, improved comfort and reduced utility bills, carbon emissions and energy usage.
•   To learn more, visit: www.wyominghomeperformance.com or call the Wyoming Energy Council, 307-742-0313.

Many banks in Wyoming also offer loans to help pay for general home improvements. Homeowners should contact their financial institution to learn more about these other financing options.

The promotion of these programs is part of The Energy Wise Wyoming campaign, which encourages state residents to conserve energy, to take steps to weatherize their homes and to take advantage of state programs designed to lower their heating bills.

The campaign is produced by a coalition of state agencies including the Department of Family Services, the Wyoming Public Service Commission, the State Energy Office, the Governor’s Office and the private non-profit Wyoming Energy Council.

Energy Wise Wyoming will distribute weekly news releases on how simple weatherization steps can reduce energy use and allow consumers more control over their heating bills. Also, the campaign aims to educate the public about existing state programs that can help them get started.

For more information:
Contact: Press Secretary Cara Eastwood
Office: (307) 777-7437 Cell: (307) 421-0197

Wyoming Community Development Authority - Jennifer Crawford
Office: 307-265-0603, Email: jcrawford@wyomingcda.com

Wyoming Energy Council - Tiger Adolf, Executive Director
Office: 307-742-0313, Email: tadolf@wyoec.org

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