Energy mortgages are essentially mortgages that credit a home’s energy efficiency in the home loan.
- For an already energy efficient home, this could allow the borrower a greater debt-to-income ratio, thereby giving the homebuyer the ability to buy a higher quality home due to lower monthly heating and cooling costs.
- For homes where energy efficiency can be improved, an energy mortgage allows money saved in monthly utility bills to finance energy improvements.
Need an appraiser with energy efficient mortgage experience? Contact the appraisers at www.scappraisals.com; our appraisers are BPI Certified Building Analysts and Certified Green Real Estate Professionals.
A variety of energy mortgages have appeared in recent years and more are anticipated as RESNET and the Environmental Protection Agency increase education and information outreach.
Energy mortgages come in two basic categories:
- Energy efficient mortgages, which are used to finance homes that are already energy efficient.
- Energy improvement mortgages, which are used to improve the efficiency of existing homes.
Energy mortgages are sponsored by both federally insured mortgage programs (i.e., Federal Housing Administration and Veterans Administration), as well as the conventional secondary mortgage market (i.e., Fannie Mae and Freddie Mac).
Read more at: http://www.resnet.us/energy-mortgage
Disclaimer: for information and entertainment purposes only.