Susan Templeton

Congress passed a long-term extension of the solar investment tax credit today as part of the final hurrah on Capitol Hill...so good things do come to those who wait!

The 8-year extension of both commercial and residential solar tax credit passed the Senate 72-24 on Thursday and the House 263-171 this afternoon, to be signed by the President. The Solar Energy Industry Association should be lauded for working hard with Congress for the last two years to support these vital tax credits to spur the industry. As a result, over 440,000 jobs will be created in this field. In addition, other alternative energy credits will encourage new technologies from everything including development and research of electric cars to bicycle riders...spurring responsible energy use...what a good thing for us all! Let's celebrate and thank everyone involved for making this happen!

Regardless of what you think about the Economic Bailout, these energy credits are a great long term and sustainable economic stimulus package I can live with!

Naturally these green credits will help anyone wanting to improve their property by way of additions, renovations, and new construction. Did I mention I specialize in Green Custom Construction and Renovation Loans? AND I have lenders who know about and fund these things!

If ever you need to keep your credit in shape, these are the times. It's important you understand the implications of how much something like one late payment can affect your FICO score. If you have derogatory issues on your report, you can hire a credit firm to help clear them. These firms and their results vary--some charge a monthly fee and some require a huge up front commitment. I personally don't recommend them unless you absolutely can't face the music. In fact, it's better to take steps to correct mistakes yourself. Take heart: over 70% of reports have inaccurate information--you are not alone!

Old Debts Bounce Back! The most recent surprises people are finding on their reports are OLD credit issues creeping back in after 10 years or more! How can this happen? Unscrupulous creditors have found loopholes in the system by reselling debts to make these debts look new when they report under a new source and date. Naturally this is very frustrating for the borrower who just found out at very moment they need it least! They may even have paid off a collection in a previous refinance, but somehow it just keeps coming back. The most typical mistakes are things your divorce attorney forgot to take care of. Like your spouse's car payment which by they way they stopped paying. Be forewarned that when you pay off an item in a debt consolidation it is your responsibility to follow up that the payoff was complete, the balance is now zero or it was correctly transferred to the other party removing your name forever.

Report Inaccuracies Yourself First:Call the creditor and be polite, firm and persistent they have made a mistake. Just being polite is note enough...paper them to death with certified letters, faxes and documents to prove your case. Once you have a result, save all this evidence in case it has to be revisited as in the bounce back situation described above. If they do return or are not removed as promised, you can dispute at the credit bureau level with your documentation in hand.

YOU DO KNOW HOW TO OPT OUT????!!! It's free and the most painless protection available: www.optoutprescreen.com will keep the bureaus from reselling your report and end your spam and junk mail by the ton, reducing your carbon footprint! For more information, check out my credit blog: www.netcredit.blogspot.com

Take care of your credit and it will take care of you...and hey...be careful out there!

OPTIONS for Green Loans:

Freddie Mac, Fannie Mae, Housing and Urban Development (FHA) and the U.S. Department of Veterans Affairs (VA) all offer their particular shade of Green Mortgage. Clients who qualify for an FHA version can add the cost of "cost-effective" energy improvements to their purchase or refinance mortgage. As an example: FHA allows for an additional $4,000 or 5 percent of the loan amount, capped at $8,000 and VA Loans are capped at $6,000.

That figure that won't do much for the borrower installing a $50,000 photo voltaic system or adding higher economic values into their Built Green or LEED home. In those instances, we accomplish more by finding the right lender for your project who appreciates the value of green improvements to your long term bottom line. Not all underwriters even know what these things are!

NOTE: The best energy-efficiency improvements for your effort are not necessarily the most expensive. Since average home loses as much as 30 percent of its heating or cooling via leaky ducts and bad window and door seals--a few hundred dollars to correct these issues are more than worth the trouble.

Home Energy Rating System (H.E.R.S.)

For the classic EEM, You must conduct and HERS audit of the property as part of the process by a verified auditor. The audit may cost $750 or more and identifies cost-effective improvements and their value over the life of the improvement. You may be required to pay an EEM project manager to manage the process depending on the lender program selected. This includes contractor bids for the work to be performed and signed off like any other construction loan. Most give you 90 days to complete the work.

Now if this sounds like a lot of work for an extra $4,000 - $8,000 you would be correct! The EEM-loan process is designed to help homebuyers determine what work to undertake and how to manage the money for improvements until the work is completed and verified. The bottom line is the benefits must outweigh the costs.

Upgrading to Green?

Renovation Loans will let you borrow more than a home is worth prior to construction (up to 4 units) to complete major upgrades and EEM's may be factored into the equation. Your equipment manufacturer should provide the documentation needed about their product's performance to help you qualify. With the cooperation of your Energy Auditor, Appraiser and Mortgage Lender you can get the most green for your greenbacks!

Beware Greenwash!

Be sure the consultants you work with are qualified to offer whichever program you select. Some lenders promote a ‘green incentive'. Take a closer look...they are not necessarily the real deal!

More on my blog: www.buildnet.blogspot.com

• Do people 'get' the value of energy and resource effiency?
• Do builders and consumers in your area value the sales advantages of green?
• Do realtors list green items so they can be compared?

Green Mortgage Facts

If you are considering buying or renovating a home, you have more reason than ever to incorporate green features into your design. Rising materials costs and fuel price impacts are hitting homeowners hard with no end in sight. Meanwhile rising mortgage rates means that the amount of money for which you may qualify is declining. Add the fact of tighter guidelines-well, you really don't want to be refinancing every few years.

One way to lower your energy bills and qualify for a larger mortgage is by adding to your home's energy efficiency. You can choose from several energy efficient mortgage programs (EEMs) commonly referred to as Green Mortgages. Originally introduced in 1979, the model is based on improving energy efficiency to lower ongoing maintenance costs over time. Hopefully air quality and sustainability issues will be added to these products soon if consumers have their say!

How EEMs Work
Lenders recognize that greater energy efficiency will lower a consumer's energy bill, and that consequently a consumer has more cash available for a larger mortgage payment. EEMs also allow consumers to apply state or product rebates toward the loan transaction. UPDATE 10/1/08: US Congress is negotiating to increase energy tax credits for homeowners...so now would be a good time to put pressure on your Federal and State Legislators!

Below is a comparison of a regular mortgage and an EEM from Fannie Mae:

Comparison of Standard and Energy Efficient Mortgages

Source: Fannie Mae (*note interest rate not guaranteed)

Although this example assumes that it will cost more to build an energy efficient home, many builders are able build more efficient homes by careful planning for little or no additional cost.

The Benefits of EEMs

•□ Qualify more homebuyers for better homes

•□ Reduce the cost of home ownership and maintenance

•□ Reduce America's dependence on imported oil and protect the environment

•□ Green homes are healthier-resulting in fewer medical bills and happier residents long term

• Has anyone had success with these programs?
• Are you currently working with borrowers needing to upgrade old systems?
• Are you working with borrowers using EEM's for new construction allowances?

Is this a Reality Game gone wrong? US Representative Marcy Kaptur pleads for Real Reform Now.

Watch her Rules to Wall Street Bailout Game: http://www.youtube.com/watch?v=S27yitK32ds&NR=1 If you had any doubt about it, just read a little history on the formation of the Federal Reserve Bank and how they were formed at 1-4am by a very small group if political insiders. This very group of political insiders is now seeking to, as Rep Kaptur suggests, Privatize Gains and Socialize Losses.

Some very insightful economic and political people are telling us they have sufficient evidence that our current economic mess was planned, yes planned. By whom?

Well look around and see who is benefitting...the big shots in high finance and government agencies including the CEO's of our regulatory and Government Supported Enterprises are square in our sights. Have you ever noticed how responsible businesses who treat their staff well and behave with social responsibly are still in business? We have watched with horror how, after 100+ years in business, a new CEO invests secretly in a shady sub prime company and whammo a trusted company is bankrupt inside 5 years. If financial institutions have not succumbed to the greed of inflating their books or selling worthless paper assets, these institutions are still performing well. Many many people who have behaved responsibly in their own financial matters are now expected to pick up the tab for those who have not.

Do you think our prudent banking system (created after the Depression) is doomed?

Do you think Congress can solve the situation?

If not, who do you trust to solve the problems in our economy?

Do you think criminal prosecution should be taken against Wall Street profiteers?