With this year’s summer being so much cooler than the previous Sacramento summers, you might not notice that you need more energy efficient appliances and windows but homebuyers of older Sacramento homes just might. Luckily for them (and homes built before 1978) there is help. The Sacramento Association of Realtors hoping to fix the reluctance of homebuyers from buying older homes has started a program funded with $234,000 to give qualified homebuyers $2,000 to make energy-efficiency improvements. While making these improvements can sometimes cost more than that amount, it can be a good place to start for many homebuyers.

About 6 in 10 homes currently on the market are estimated to be built before 1978. This program would also cover many on the foreclosures that are currently on the market for sale.

Some qualifiers: Homebuyers must use a SAR Realtor or lender, so the homes must be located in an area that a SAR Realtor or lender is qualified to sell or get a mortgage. The homebuyers must also get an FHA (Federal Home Administration) or VA (Veterans Administration) Energy Efficient Mortgage. These mortgages allow homebuyers to borrow up to 5% to make energy efficiency upgrades. These can include adding insulation, dual paned windows or new air-conditioning to an older home. The costs are rolled into the mortgage. The SAR program requires that a SMUD-certified contractor do the work.

This might just help clean up that short sale and foreclosure inventory, or at least help provide an incentive to many homebuyers who are relatively short on cash after buying a home.

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