PATH - A Public Private Partnership for Advancing Housing Technology

Energy Efficient Mortgages (EEMs)

Which of these options appeals to you? Buy a house that has a monthly mortgage payment of $1000 and electricity and natural gas bills totaling $250 a month? Or instead, pay $1100 a month in mortgage payments and have energy bills of $60 a month, in a house that's energy efficient?

With the second option, you spend less of your income each month for a home that is more comfortable and livable. This is the choice that leads many homebuyers to use an Energy Efficient Mortgage. Energy Efficiency Mortgages provide special benefits for those people who purchase homes that are already energy efficient. They can also provide extra funds for people willing to install energy-saving improvements that make their new homes more efficient. Even if you are remodeling or refinancing your home, you can probably use an Energy Efficiency Mortgage.

This type of easy-to-use home funding is available through the Federal Housing Administration, the Veterans Administration and even such conventional lending programs as Freddie Mac and Fannie Mae. It has been around for over a decade and can be applied to most home mortgages. It can allow homebuyers to stretch their debt-to-income ratios by up to two percent on new and existing homes that meet energy efficiency standards.

What is an Energy-Efficient Mortgage?
Answers to many questions about EEMs.

http://www.ase.org/consumer/finance.htm
Search for banks that can provide you with a variety of loan types: FHA, 203K, WHAT, VA, and more.

Energy Efficient Mortgages
HUD information on EEMs.

Content updated on 9/19/2005

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