Hello, future homeowners! I wanted to share some valuable information with you about Energy Efficient Mortgages (EEMs). These can be a real game-changer when you're in the market for a new home or considering upgrades to your current one.
Here's the lowdown: EEMs can help you buy a home that's already energy-efficient, like those ENERGY STAR-certified gems. Alternatively, if you're thinking of making your current place more eco-friendly, an EEM can finance those improvements. The best part? The money you save on utility bills can lead to more favorable financing terms from lenders.
To get started with an EEM, we'd typically bring in a home energy expert for an assessment before getting the green light on financing. This not only shows that your potential new home is energy-efficient but also provides the lender with important details, such as estimated monthly energy savings and the value of planned upgrades. EEMs are supported by federal mortgage programs (FHA and VA) and the traditional mortgage market. As your real estate agent, I can walk you through conventional EEMs, FHA EEMs, or VA EEMs, depending on what aligns with your goals.
Breaking Down Your Options:
Conventional Energy Efficient Mortgage: If you're looking to enhance your purchasing power, a conventional EEM might be the way to go. Fannie Mae's HomeStyle® Energy mortgage lets you seamlessly finance energy-efficient upgrades during a purchase or refinance. Think of it as a pathway to a more sustainable home.
Federal Housing Administration (FHA) Energy Efficient Mortgage Program: For those keen on reducing utility costs, FHA's EEM has you covered. It allows you to finance energy-efficient upgrades with your FHA-insured mortgage. The qualification process is straightforward, focusing solely on the loan amount needed for the home.
USDA Single Family Housing Guaranteed Loan Program: If the idea of living in a rural area appeals to you, the USDA's program offers 100% financing for low- and moderate-income households. It's an excellent opportunity to secure, build, or improve a property in eligible rural areas.
Veterans Affairs Energy Efficient Mortgage: To our military community, the VA's EEM is a valuable option for financing energy improvements when purchasing an existing home. Check out Chapter 7 of Pamphlet 26-7 for the specifics, and the VA's website has additional information.
I'm here to assist you every step of the way as you explore these financing options and work towards turning your homeownership dreams into reality. Let's make it happen!