Did you know that benefit from green financing options, whether you are buying, selling, refinancing, or remodeling a home? These are referred to as Energy Efficient Mortgages (EEMs). There are a range of green financing options available.

• Fannie Mae allows borrowers to add the cost of the energy efficiency improvements to the principal amount of the loan without compromising the loan-to-value ratio, up to 15% of the total loan.
• FHA’s EEM allows you to borrow up to 5% of the total loan value in cost-effective energy efficiency improvements, with a minimum of $4000 and max of $8000.
• Energy Star® Mortgages offer a 2% stretch on the borrower’s debt-to-income ratio as well as one or more of the following: a lower interest rate, discount on closing costs, and/or paying for cost of home energy rating.

Filed under: Energy Efficient Mortgages