Mortgage Information
Mortgage Information
What is an Energy Efficient Mortgage (EEM)?
Energy efficient homes cost homeowners less to operate on a monthly basis than standard homes because they use less energy. Home buyers who chose energy efficient homes can afford to spend more on their housing expenses because they will likely spend less on their energy costs.
The EEM allows borrowers to qualify for a larger mortgage as a result of the energy savings, benefiting those buying new, energy efficient homes or those purchasing existing homes that need energy improvements.
For an energy efficient home, for example, it could mean giving the home buyer the ability to buy a higher quality home because of the lower monthly costs of heating and cooling the home. For homes in which the energy efficiency can be improved, this concept allows the projected savings in monthly utility bills to finance energy improvements.
If you are remodeling your current home, you may be eligible to refinance with an EEM to pay for energy upgrades. The EEM provides extra funds for people willing to install energy-saving improvements that make their existing homes more efficient.
Key Features of the EEM
An EEM offers many benefits, including:
- Increases home buyer's qualifying income
- Energy savings reduce monthly operating costs
- More comfortable home in all seasons and climates
- 100% of energy improvements can be financed - up to 15% of the value of the home for existing homes, and up to 5% of a new home's value
- Offers quality assurance with the required Home Energy Rating report by a RESNET-certified Home Energy Rater - rating is required before financing is approved
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