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GREEN FINANCING
The world of Green Financing is rapidly changing and MaGrann Associates is here to keep you on the cutting edge of information about this field, from Property Assessed Clean Energy (PACE) loans to reduced Mortgage Insurance Premiums (MIPs) from HUD. Green Loans from Fannie Mae and Freddie Mac are available for new and existing multifamily building so there is something for everyone when it comes to saving money by building green!
MaGrann Associates can help you take advantage of green loan programs that can lower financing costs. By partnering with lenders we offer a seamless delivery of available green loan programs that provide cheaper access to capital.
Access to Available Green Loan Programs
The recent proliferation of Green Loan programs has created a new vehicle to access competitive loan products that have the benefit of adding value to your buildings. MaGrann Associates partners with lenders to help you gain access to capital while taking the headache out of complying with these programs. The next time you are looking to finance or refinance a project, think of MaGrann Associates to help open up a new market of cheaper capital. We will do the analysis to identify the best loan product for you and help you meet the green requirements necessary for compliance – getting you a more valuable property for less money.
Our Service Offerings Include the Following Programs:
FHA Multifamily Reduced Mortgage Insurance Premium
FHA insured loans have been made more attractive by a recent reduction in the mortgage insurance premium on green multifamily properties. The basis points for mortgage insurance have been lowered from 70 to 25 saving you money upfront and on a monthly basis.
Freddie Mac Green Advantage and Green Rebate Products
Freddie Mac is offering rebates and underwriting for green property assessments and building improvements. They are offering both better pricing and 75% more funds for properties that commit to reducing energy and water usage by 15%.
Fannie Mae Multifamily Green Financing
Fannie Mae offers 10 basis points (0.1%) reduction in their all-in interest rate. Over the life of a 10-year $10 million loan, that could result in a savings of $95,000 or more in interest. Their preferential pricing is available on new and existing multifamily properties that either meet a green certification or commit to reducing energy or water usage by 20%.
Property Assessed Clean Energy Financing (PACE)*
By financing energy and water improvements as a public good, PACE is able to write the repayment of the loan in the property valuation where it is paid back along-side the property taxes. This method extends the life of the loan and attaches its value to the property so that it is passed on in the case of a sale. This often means loans are cash flow positive from day one.
*PACE financing is only available in certain jurisdictions. Contact MaGrann Associates for more information.
See our blog posts below for more on your green financing options!
Green Financing Overview
Green Financing
