Energy Efficient Mortgage

What’s an Energy Mortgage?

We all know what a mortgage is, but what about an energy mortgage?   Energy mortgages encourage homeowners, or those who are looking to buy a home, to invest in energy efficiency measures by making it affordable for them to do so.

Types of Energy Mortgages

When looking for an energy mortgage, it’s important to choose the right one. There are two types to consider:

Energy Efficient Mortgage

Energy efficient mortgages are usually used towards purchasing new homes that are already energy efficient. They allow home buyers to finance and include cost effective energy saving measures as part of their mortgage. By stretching debt-to-income ratios on loans, they enable borrowers to qualify for larger loan amounts and better, more energy efficient homes. To get approved for an energy efficient mortgage, borrowers must first do a home energy rating to ensure the house is energy efficient.

Energy Improvement Mortgage

Energy improvement mortgages are normally used for existing homes where borrowers plan to make energy efficiency improvements. The costs of the improvements are included in the mortgage, so borrowers aren’t faced with the prospect of a larger down payment. Money that is saved in utility bills can then be used towards financing energy improvements. As with energy efficient mortgages, in order to qualify for an energy improvement mortgage, borrowers must first have a certified home energy rater conduct an energy rating on the home.

Why go for an energy mortgage?

Makes energy efficient upgrades to existing homes affordable

Helps increase the value of your home

Increases consumer purchasing power

Consider an EEM with your remodeling project.  I could allow you to complete the improvments with a bettger payment.

Offers a different approach to financing