Mortgage Information
Mortgage Information
What is an Energy Efficient Mortgage?
The Energy Efficient Mortgage (EEM) recognizes that 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. The EEM benefits 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 money saved in monthly utility bills to finance energy improvements. They can also provide extra funds for people willing to install energy-saving improvements that make their new homes more efficient. If you are remodeling your current home, you may be eligible to refinance with an Energy Improvement Mortgage (EIM) to pay for energy upgrades.
Key Features of the EEM
An EEM or EIM 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 required Certified Home Energy Rating report by third-party Home Energy Rater - rating is required before financing is approved
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