Page 20 - Sonoma County Gazette February 2020

Financing Program for Wildfire Safety and Seismic Improvement
The Sonoma County Energy Independence Program (SCEIP) is now financing wildfire safety and seismic strengthening for both residential
and commercial buildings.
Over the last ten years, the program has funded thousands of projects resulting in greenhouse gas emission reductions and job creation countywide. This expansion adds a resiliency component for property owners to fortify their buildings against disasters, ultimately saving more emissions and further working towards climate saving efforts.
How to Finance a Fixer-Upper
The easiest way to buy a fixer-upper is you have a decent amount of money and you buy a house that needs cosmetic fixing up. That way, you can buy the house with a regular loan and use your own money to remodel. Mortgage lenders will not lend on homes that are not in at least average condition so if the house is in the below-average condition you may need a renovation loan.
If the home needs more work or if you do not have a lot of
money, there are several options. Let’s say that you qualify to buy a
move-in ready house for $500,000 with 10% down and you can’t find anything you like. Then you find a house that is only $400,000 but needs $100,000 worth of work. You can buy that same house with the same $50,000 down payment. We will finance the purchase AND the fix-up costs as well. That is basically how it works.
“The evolution of the Program originally implemented to meet climate change goals just made sense,” said Board of Supervisors Chair Susan Gorin. “As climate-related disasters come more frequently along with increased planned power shutoff occurrences, the ability to easily access
T T h h e e g g o o o o d d n n e e w w s s i s t h a t r i g h t n o w, p e o p l e w o r k i n g in home loans have a lot of options in the area of fixer-
f u nd i ng i s c r it ic a l i n ou r r e si l ie nc e a s a Cou nt y. Ma k i ng ou r bu i ld i ng s s a f e a nd resilient can help protect lives and build sustainable communities to withstand disasters.”
u up pp p e er r s s a a n nd d c c o on n s st t r r u uc c t t i io on n l le e n nd d i i n ng g. . N No ot t e ev ve er r y yo on ne e h h a a s s all options available to them or they choose not to
Initially, the Program allowed property owners to finance energy efficiency and water conservation-related improvements through the property tax system as an assessment. The expansion adds dozens of improvements for existing buildings.
offer them since they are a bit more work than a n n o o r r m m a a l l l l o o a a n n , , s s o o y yo o u u n n e e e e d d t t o o a a s s k k i i f f y yo o u u r r m m o o r r t t g g a a g g e e
professional offers them.
Now that you have the basics, you need to know
“The Sonoma County Energy Independence Program now offers commercial and residential property owners a financing option to increase the safety, resiliency, and value of their largest investment and, in doing so, our entire community will benefit,” said the County’s Auditor-Controller-Treasurer-Tax Collector and Program Administrator, Erick Roeser.
that there are loan programs that you can put down just 3.5% of the purchase price and 3.5% of the fix-up costs
Financing-and-Rebates/
Email: GSenergy@sonoma-county.org.
and finance 96.5% of the whole thing. This is for owner-occupied homes only.
For more information about the program and how it can be used to finance the purchase and installation of solar panels, battery back-up technology, and earthquake safety features:
A renovation loan like this is basically a light construction loan. The first part of the escrow process is pretty much the same as a regular purchase but you need to get a contractor’s bid for the work to be performed.
Call: (707) 565-6470
Visit: sonomacounty.ca.gov/General-Services/Energy-and-Sustainability/
You close escrow at the negotiated purchase price and at that point the Realtors and the seller are done with the transaction. The buyer, contractor and the mortgage company work together to complete the work needed on the home,as well as any touches that you want to do. You can make additions to the home, do a complete remodel or simply replace a roof and put in new carpet. It is completely up to you as long as you qualify for the final loan amount and the value of the final project fits in the box.
AND there are programs where you can buy an investment property with as little as 15% down and 15% of the fix-up costs.
About the Sonoma County Energy and Sustainability Division: The Energy and Sustainability Division promotes and delivers solutions necessary to mitigate environmental impacts and prepare for climate change.
Our print edition pages can only hold PART of what comes our way...
It can be really great to fix up a house the way you want it but
you need to be aware of a few things as well. These take a little bit more time because you have to deal with a contractor and so if the house can be financed without a renovation loan, you may have difficulty getting a seller to agree to the extra time for your cosmetic remodel.
all month long. Visit our website @
The other thing to be wary of is that a remodel is a lot of work. So you will have a longer escrow with more moving parts as well as a construction project after you buy the house.
SonomaCountyGazette.com
Need to know more? Please send me your real estate and mortgage-related questions. I am happy to answer you and it may become the topic of a future article.
Hans Bruhner (NMLS 243484) is a Mortgage Advisor for Finance of America Mortgage (NMLS 1071). Both are licensed by the Department of Business Oversight under the CRMLA. If you have a question, please contact Hans at (707) 887-1275 or hans@hansblog.com
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