Consider An Energy Efficient Mortgage For Your Green Home
An energy efficient mortgage is available to those who are looking to purchase a home which has had specific energy efficient improvements made to it or a home that was originally built as energy efficient. Today in the United States, you have the choice of three different types of energy efficient mortgages that one can now choose from.
The types of mortgages that are available are the conventional energy efficient mortgage (EEM), the FHA EEM and the VA EEM. Below we take a look at what these are and who can actually apply for one if they want.
Conventional Energy Efficient Mortgage - This can be used by anyone and will allow the lender to increase the amount the borrower is loaned by an amount that is equal to the estimated energy savings to be achieved from the energy efficiency of the home. This loan also adjusts the actual value of the property in order that it clearly reflects the value of the energy efficient measures that have been made to it.
FHA Energy Efficient Mortgage - With this one, a lender is able to lend a person up to 100% of the costs of making energy efficient improvements to a home. The maximum amount that you can borrow on such as loan is $8,000, but you do not need to make any additional down payment. These are also known as energy star mortgages as they can be used on those properties that are classified as energy star qualified.
The VA Energy Efficient Mortgage - The only people who can apply for this type of loan are those who currently serve as military personnel, or who are classified as reservists or veterans. As with the FHA EEM, there is only a set sum of money that one can borrow in order to make improvements to a home. Currently the maximum amount that such people are able to borrow is $6,000.
There are numerous benefits to be gained from one taking out such mortgages or loans and below we look at a couple of these. As well as helping you to save on the costs of your utility bills each month, making such improvements to your home can actually increase its resale value as well.
A person is able to borrow a larger sum of money as the lender will look at the estimated savings to be gained as a result of lower monthly utility bills and an take this into account when factoring in the amount of monthly payment that the homeowners can afford. This means that the more energy efficient the property is, the more you can borrow.
Another benefit is that taking out an energy efficient mortgage you will find that you can include the cost of any improvements that you wish to make within the sum that you wish to borrow. This means again that you are going to be saving yourself money and you are then able to pay back the sum borrowed over the lifetime of the mortgage rather than over a much shorter period.
AnEnergy Efficient Mortgage, also known as an EEM, can be valuable tool when seeking to construct a green home. John Wyeth writes informative articles for homegreenhome.info - a blog about building, financing, powering and living in your green home.
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