homegreenhome.info

An energy efficient mortgage is available to those who are looking to purchase a home which has had specific energy efficient improvements made to it or a home that was originally built as energy efficient. Today in the United States, you have the choice of three different types of energy efficient mortgages that one can now choose from.

There is the conventional EEM (Energy Efficient Mortgage), the FHA EEM or the VA EEM. Below we take a look at just what these different types of mortgages are and who is able to utilize them.

Conventional Energy Efficient Mortgage – This can be used by anyone and will allow the lender to increase the amount the borrower is loaned by an amount that is equal to the estimated energy savings to be achieved from the energy efficiency of the home. This loan also adjusts the actual value of the property in order that it clearly reflects the value of the energy efficient measures that have been made to it.

FHA Energy Efficient Mortgage – With this one, a lender is able to lend a person up to 100% of the costs of making energy efficient improvements to a home. The maximum amount that you can borrow on such as loan is $8,000, but you do not need to make any additional down payment. These are also known as energy star mortgages as they can be used on those properties that are classified as energy star qualified.

VA Energy Efficient Mortgage – This particular type of mortgage is available to personnel currently serving as a member of the military. Military personnel can apply for these loans when they wish to make energy efficient improvements to a property that they own currently. At present, a person is able to borrow between $3,000 and $6,000 in order to make the necessary improvements to their home to make it more energy efficient.

Actually, taking out such a mortgage can provide the borrower with a number of different benefits and below we take a look at just what some of these are. Certainly making energy efficient improvements to the home can not only save on your bills but will also increase the value of the property as well as making it more saleable in the future.

The estimated savings that you should realize on energy bills for the property will allow you to qualify for a larger sum of money than you otherwise would be able to borrow. This actually means that you could afford the home of your dreams without the mortgage costing you any more than on a more traditional style of home.

You will find that with an energy efficient mortgage you can actually include the costs of any improvements that you wish to make to the property in to the total amount that you wish to borrow. This means that you can pay for all the improvements as long as they are valued at around 15% of the total value of the property and then can be repaid over the lifetime of the loan.