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What is an
ENERGY EFFICIENT MORTGAGE?
An energy efficient
mortgage (EEM) is a class of financing that allows the homebuyer
or homeowner to incorporate the costs to have or obtain a higher level
of energy efficiency into the monthly mortgage payment. Realization of
these energy efficient improvements will result in lower monthly utility
bills, allowing a larger percentage of the homeowner's monthly income to
be available to meet the monthly mortgage payment. For that reason, the
homeowner can qualify for a larger loan and purchase a larger, more
comfortable, more energy efficient home. Also, low utility bills makes a
home more attractive and affordable to buyers when it comes time to
resell the home, given it more value..
THE ENERGY EFFICIENT MORTGAGE
means comfort and savings. When you are buying, selling, refinancing, or
remodeling your home, you can increase your comfort and actually save
money by using the
Energy Efficient
Mortgage (EEM).
It is easy to use, federally recognized, and can be applied to most home
mortgages. EEM's provide the borrower with special benefits when
purchasing a home that is energy efficient, or can be made efficient
through the installation of energy-saving improvements.
Home owners with lower utility bills have more money in their pocket
each month. They can afford to allocate a larger portion of their income
to home expenses. If you have more cash, why not buy a better, more
comfortable home? There are two options with the Energy Efficient
Mortgage.
-
Finance Energy Improvement.
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Cost-effective energy-saving measures may be financed as part of the
mortgage
-
Make
an older, less efficient home more comfortable and affordable
-
Increase your
buying potential
-
Stretch debt-to-income qualifying ratios on loans for energy-efficient
homes
-
Qualify for a larger loan amount
-
Buy a
better, more energy efficient home
WHICH
BUYERS and HOMES ARE ELIGIBLE?
All
buyers who qualify for a home loan qualify for the EEM. The EEM is
intended to give the buyer additional benefits on top of their usual
mortgage deal. The lender will use the energy-efficiency of the house,
as determined by a HERS rating, to determine what these benefits will
be.
Energy
Efficient Mortgages can be done on most homes. Availability is not
limited by location, home price or utility company. EEMs can be done on
government (FHA and VA) conventional, Portfolio and Jumbo Loans. Your
lender will help you choose which loan type is best for you.
Get an EEM on:
An EEM can only
be done if an official home energy rating, or HERS Report, indicates
that it will save you money.
FOR MORE DETAIL
INFORMATION
HERE:
* The information
above was obtained from
http://www.hud.gov/offices/hsg/sfh/eem/eemhog96.cfm |
