Tag Archives: energy efficient mortgage

The Energy Efficient Mortgage

Posted on June 18, 2013 | 1 comment

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.

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Posted in Mortgage Information

Tagged energy efficient mortgage, home mortgage, improvement mortgage, solar

Smart Financing: Energy Efficient Mortgages

Posted on May 8, 2012 | Leave a comment

Although you might have heard the term Energy Efficient Mortgages (EEMs), many of us don’t know what they are. That’s unfortunate, because these programs could help many new homebuyers afford or create a more efficient and comfortable home that costs less to operate.

Recently had energy upgrades and did not credit for it on an appraisal? Contact the appraisers at www.scappraisals.com they specialize in green and energy efficient properties.

Energy Improvement Mortgage (EIM)

An EIM allows borrowers to fold the cost of energy-efficiency improvements into the mortgage—without increasing the down payment. Borrowers can use the money they will save in utility bills to finance energy improvements.

Both EEMs and EIMs typically require a home energy rating to provide the lender with the estimated energy savings and the value of the energy-efficiency improvements—known as the Energy Savings Value. EEMs and EIMs are sponsored by federally insured mortgage programs such as the Federal Housing Administration (FHA) and Veterans Affairs (VA), as well as the conventional secondary mortgage market (Fannie Mae and Freddie Mac).

Disclaimer: for information and entertainment purposes only

What is an FHA Energy Efficient Mortgage?

Posted on January 23, 2012 | Leave a comment

When you’re looking for a home to buy with an FHA loan, one of your biggest concerns is naturally how much you’ll need to budget for each month in FHA mortgage payments. Add utility bills and any property maintenance you need to do to the equation and it’s clear that any way you can trim down those monthly payments is a good thing.

One way to raise the value of your property and lower your utility bills at the same time is to apply for an FHA Energy Efficient Mortgage or FHA EEM. These mortgages are federally recognized, available in all states, and give you the means to upgrade the home you want to buy to make it more energy efficient. The resulting lower utility bills and increased equity in your home will definitely benefit you over the lifetime of your FHA loan. Depending on how much money you save on your energy bills, you could even change your debt-to-income ratio and qualify for a larger FHA loan.

Contact the staff at: www.socalappraisalserv.com for more information. Appraisers at Southern California Appraisal Services are also BPI certified building analysts.

WHAT DO I NEED TO GET AN EEM?

The first thing you need to qualify for an FHA EEM is a report on the property’s energy efficiency. This is called the Home Energy Rating Systems report, and is performed by a professional rater. The property is inspected, everything from the insulation to the appliances. Even the windows get a look. The cost of the home as it exists at the time of inspection is calculated and will be compared to projected energy savings after upgrades.

Once the property’s current energy efficiency is determined, the inspector makes recommendations on how the property must be improved. The recommendations include a cost estimate for the upgrades and how much the home could save once those upgrades are properly installed. The recommendation also includes information about how long the upgrades will last until they must be repaired or replaced.