Fannie Mae, The Federal Housing Administration and The Veteran’s Administration offer Energy Efficient Mortgages. EEMs are not for everyone, you take out a larger loan to cover your improvements, and it depends on your plans for the future and keeping your property to capture your Return On Investment (ROI). You can finance insulation, geo-thermal systems or higher efficiency heating and cooling systems. Solar panels and new windows come with a price tag that can be financed as well.

An EEM starts with a HERS Rating. The HERS Rating will produce a list of recommendations based on the specific needs of the home and projected ROI. The HERS Rater will provide the proper documentation needed by the lender. Once the HERS Rating is complete you will then choose the type of loan to receive: Conventional, FHA or VA.

The average home owner spends $2,200 on energy costs per year. By making Energy Efficient Improvements the home energy costs can be dramatically reduced. As the price of energy continues to rise, an EEM can allow you to make an investment on improvements now, before your utility bills get out of hand.