Whether you are planning on purchasing, refinancing or rehabbing a property to make it more energy efficient, you will definitely want to look into energy-efficient or green mortgages, as they are often called.
This program applies to the property you call your primary residence. Generally this means a single unit, but Freddie Mac offers Energy Efficient Mortgages (EEMs) for principal residences from one to four units. Second homes are excluded from EEM programs.
How it works
With an EEM you are able to finance the cost of improvements that will make your home more efficient, and therefore lower your overall monthly energy expenses. EEMs are available through a variety of mortgage programs from Fannie Mae, Freddie Mac, FHA and VA.
The cost of the improvements can be rolled into a new loan, or it can be a stand alone mortgage separate from your existing one. Buyers can benefit from EEMs if they are purchasing a new energy efficient home.
To participate in the program you first must work with a certified energy consultant who will determine your proposed energy savings by using what is called a Home Energy Rating System (HERS). These consultants, or raters, must be certified by the Residential Energy Services Network (RESNET). There are fees associated with working with the consultant, and they can often be rolled into the cost of the loan.
Contact your mortgage professional for more details on this program, which can help you save money on your energy bills each month.