Understand Energy Efficient Mortgages

Category : Mortgages

The Energy Efficient Mortgage allows a buyer to qualify for larger loan amounts and relaxed debt-to-income requirements with accompanying friendly interest rates.

Energy Efficient Mortgages (EEM) allow the borrower to purchase an energy efficient new home that has been verified and carries a rating similar to the EnergyStar for new appliances.

EEMs Include EIMs Energy Efficient Mortgage is a term that serves as an umbrella for all energy related lending including the Energy Improvement Mortgages (EIM) for buyers of existing homes. In a nutshell, this buyer is allowed to include the cost of making certain energy-enhancing improvements to the prospective property without increasing the amount of the down payment. Both of these mortgages are sponsored by federal agencies that guarantee to back the repayment of these loans. Most conventional EEMs are offered by lenders who sponsor Federal Housing Authority (FHA) or Veterans Administration (VA) loans. Two other federal agencies, Freddie Mac and Fannie Mae, will insure mortgages of this type subject to their popularity in the secondary mortgage market.

At Home in an Energy Efficient House The cost of heating and cooling your home is constantly on the rise. Fuel prices are going up considerably. Pollution standards are tightening and environmentalists are pressuring the general public toward responsibility for the earth they live in. It is no wonder that those consumers who are actively searching for energy savings are rewarded by lending institutions and government agencies that are willing to guarantee the energy efficient residential property loans. An energy efficient home offers many benefits to its occupants. Generally, the air quality is much better. The amount of pollution that is created by the energy supplier for the home is greatly reduced. Energy efficient homes tend to feel warmer in the winter and cooler in the summer and will accomplish this with less demand on energy sources and a greater savings on related utility bills. This is the home many builders are offering today. It's the early version of the home of the future - but the future is now. There is not one person who can afford to look the other way when faced with the current economic climate. It's now or never. Working together, we can all help make now a reality.