The Department of Energy Home Energy Rating Systems (HERS) helps people evaluate and compare energy efficiency levels of existing homes, and identify ways to improve them. In addition, this system offers a standardized measurement for the financial community (such as mortgage companies) to use. HERS-rated homes often qualify for "energy efficient" mortgages. In addition, homeowners can now obtain refinancing to make HERS-related energy efficiency improvements.
SELLING? A low HERS rating is a guarantee that a home is energy efficient and will save the buyer energy dollars -- and buyers are becoming much more aware of the importance of the potential operating costs of the home they purchase. If our HERS evaluation recommends energy efficiency improvements, your client may wish to homeset their home apart from the "average" home on the market by making the most cost-effective recommended improvements.
BUYING? Many mortgage companies recognize that owners of energy-efficient homes pay much lower energy bills. Accordingly, many mortgage lenders will let a buyer "add" energy improvement-related costs (including the cost of the HERS rating process) to the overall loan total without requiring additional down payment or adjustment to the debt-income ratio.
Home Energy Rating: Key to Getting an Energy-Efficient Mortgage (EEM)
The EEM can be used for both purchase and refinance transactions. The standard EEM can be used for limited cash-out refinances. Getting an energy-efficient mortgage requires a RESNET accredited rating report from a RESNET-certified home energy rater before financing is approved. This verifies for the lender that the home is efficient, or notes areas that need improvement to save money on monthly energy bills. The cost of these improvements then can be added to the mortgage.
Let us help you help your clients increase the value of their homes by identifying energy efficient improvements.