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Financing

Financing may help you realize comfort immediately with no upfront cost!

Ask our home consultants home energy improvement home loans sponsored by Fannie Mae and Freddie Mac. These loans consider not only the borrower's principal, interest, and taxes but also their projected energy bills in the underwriting process allowing energy efficiency improvements to be rolled into your home mortgage (often reducing your overall monthly payments). In addition, your home value is improved. A study published in the Appraisal Journal documented that the market value of a home increases $20 for every $1 decrease in the annual energy costs.

Fannie Mae and Freddie Mac-two government sponsored enterprises under conservatorship-don't lend money directly to home buyers; they purchase mortgages from lenders, ensuring that funds are available. Therefore, you can get these loans from your neighborhood bank or credit union which will then sell them to Fannie Mae or Freddie Mac. For FHA loans please contact an FHA approved lender.

Energy-Efficient Mortgage (EEM)

Fannie Mae and Freddie Mac encourage lenders to offer EEMs by providing incentives and specific criteria for those that it's willing to purchase from lenders. Both existing and new homes fall under the Fannie Mae and FHA EEM while only existing homes qualify for Freddie Mac EEM.

Fannie Mae EEM

• A HERS rating is used to evaluate a home's energy efficiency.

• For existing homes, the cost of improvements is limited to 15 percent of its total cost for Fannie Mae. There is no limit imposed on the cost of improvements for new construction.

• A home buyer can finance 100 percent of the energy efficiency improvements without increasing the down payment.

Freddie Mac EEM

• Several home energy rating methods and/or documentation, not just a HERS report, are acceptable.

• Lenders can exceed the standard 2% debt-to-income stretch at their own discretion.

• It allows a broader range of energy-efficient improvements than most EEM programs.

FHA Energy-Efficient Mortgage

• Energy-efficient improvement costs of $4,000 or 5% of the property value (up to $8,000), whichever is greater, can be financed.

• The FHA maximum mortgage limit for an area may be exceeded by the cost of the improvements.

• No additional down payment is required.

• No requalifying is necessary.

• No new appraisal is needed.

• Up to $200 of the cost of a home energy rating may be included in the mortgage.

Energy Efficiency Improvement Mortgage

Fannie Mae is partnering with utility companies to provide loans to utility customers for the installation of energy-efficient home improvements. The loans feature:

• A below-market interest rate

• An unsecured financing option

• Up to $15,000

• A term of up to 10 years

• A "whole-house" or bundled approach to efficiency improvements.

Please note that Federal lending program criteria is subject to change. Please consult your lender regarding the specifics of each program.