From a practical point of view, the energy efficient mortgage program gives you greater borrowing power by allowing your lender to extend loans that cover the. An energy efficiency mortgage (EEM) provides you with the opportunity to finance energy-saving improvements over the term of the loan. Homeowners or new buyers looking for a way to realize their environmental awareness goals for their budget can find what they are looking for in an EEM. Energy-efficient mortgage programs allow you to borrow money specifically to pay for energy efficiency improvements to your home.
The cost can be added to the mortgage used to buy a home or added to your current mortgage through an energy efficient refinance so you can make improvements to the home you have now. Loans can provide an affordable way to make improvements that may be costly to start with, but that save money in the long run, such as double-glazed windows, tankless water heaters, a high-efficiency furnace or air conditioning (HVAC) system, and new insulation. The result is a more environmentally friendly living space with significantly lower heating and cooling costs. The cost can be added to the mortgage used to buy a home or added to your current mortgage through an energy efficient refinance that allows you to make improvements to the home you have now.
Energy-Efficient Mortgages (EEM) and the Energy-Efficient Mortgage Program offer a way to help us save the planet, be greener and enjoy significant cost savings. EMEs are sponsored by federally insured mortgage programs (FHA and VA) and the conventional secondary mortgage market. One of the best ways an energy efficient mortgage program can work for you is to increase your purchasing power and allow you to qualify for a larger mortgage. The FHA's Energy-Efficient Mortgage (EEM) program allows homeowners to save money on utility bills by allowing them to finance energy efficiency improvements with their FHA-insured mortgage.
EEMs, available in conventional, FHA and VA mortgage formats (see below for a more detailed explanation), provide additional funds that are included as part of the mortgage or refinance of your home, funds that you can request to make energy-saving improvements. Unlike a home equity loan or a home equity line of credit (HELOC), energy efficient mortgages are not a type of second mortgage.