Energy Efficient Mortgages

Energy Efficiency Assists in Obtaining Mortgages

Prospective homeowners can take advantage of the opportunity to finance the purchase of a new home by applying for an Energy Efficient Mortgage (EEM), provided the home is adjudged by a home energy rater as energy efficient.  In so doing, current criteria regarding debt-to-income ratios can be stretched, providing the capability to take on a larger loan than normally would have been possible, but for the decision to purchase an energy efficient home. There are actually a number of energy mortgages including Energy Improvement Mortgages (EIMs) which extend the concept to include homes that are currently not energy efficient, but whose purchaser is committed to making these improvements. In this instance borrowers can include the cost of energy efficient improvements without increasing the down payment. In both instances, the actual rating must provide the lender with estimated energy savings on a monthly basis.  These mortgages are supported by federally insured programs, FHA and VA as well as Fannie Mae and Freddie Mac.

For details refer to the following link:

http://www.energystar.gov/index.cfm?c=mortgages.energy_efficient_mortgages

So, not only can consumers benefit from savings attributed to an energy efficient home, they can also qualify for a more attractive mortgage.