'Green' house effect: Use an Energy Efficient Mortgage to build dream eco-friendly home
Couple that with the high cost of maintaining a home — paying for utilities and environmental concerns — then one might be led to consider little-known options like buying a house that is eco-friendly or revamping your home into a "green" house using an Energy Efficient Mortgage (EEM).
Federally recognized, EEMs provide borrowers with benefits when they purchase "a home that is energy efficient or can be made efficient through the installation of energy-saving improvements," according to the Federal Citizen Information Center Energy Efficient Mortgage Home Owner Guide.
EEMs can also be applied to most traditional home mortgages, increasing monthly mortgage payments slightly, but that money can be recouped through lower energy bills. Homeowners who are buying/selling, refinancing or remodeling can use EEMs, which can help buyers qualify for larger loans, make homes potentially more attractive at resale and help owners save money in the long run through increased energy efficiency. It is important to note that under federal rules governing the program, an EEM can only be made on a home that has a qualifying Home Energy Ratings Systems (HERS) report.
Energy efficient loans aren't all that's being specialized in this market. Andrew Stone recently received his certification as an eco-broker. To do so, he completed a curriculum on numerous subjects such as solar and wind energy, as well as rainwater retention systems and indoor air quality.
Stone said his knowledge can be of great help to people who might be interested in eco-friendly homes. "I'm working to get together with other green-minded people (lenders) and network with green builders so that we have some backing and a larger group of (real estate) people so that when I come upon clients who are interested, I can have people to send them to," Stone said.
But since becoming certified earlier this year, Stone has yet to make his first green sale, which may, in part, be a function of a slowdown in the overall housing market.
Still, Stone remains undeterred. He said more and more people are becoming aware of EEMs. "A lot of people are saying, 'Hey, I can refinance my home and make all these upgrades right away.'" He said he is working prospective buyers to look at purchasing existing homes and informing them of resources available to make green upgrades, including some conventional loans he said will allow homebuyers to borrow up to 115 percent of a home's value for energy efficiency improvements.
Recent comments
Thanks for sharing information about EEM. I am a Realtor in Dickson...
dicksontn-realestate | Feb. 1, 2008 at 9:21 a.m.
Buildings and homes guzzle more energy than cars, and yet are largely...
Building efficiency = Comfort | Sept. 22, 2007 at 6:24 a.m.
