Chances are you’ve never heard of one. According to the EnergySavers.gov website, “Energy Efficient Mortages (EEMs) recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA Energy Efficient Mortgages provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy-efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD.”
If you are buying a Energy Star-certified home or are considering making energy-efficient improvements to your home, learn more about FHA Energy Efficient Mortages and the eligibility requirements. When you see products that carry the Energy Star label, you’ll know that they are highly energy efficient and kinder to the environment.