Energy Efficient Financing

An Energy Efficient Mortgage (EEM) can be used when buying, selling, refinancing, or remodeling your home.  Dispite being underused, EEM's are actualy easy to use and can be applied to most home mortgages.  For the exam there are two types of EEM's you should know: Energy Improvement Mortgage and Energy Efficiency Mortgage.

Energy Improvement Mortgages

Finances the energy upgrades of an existing home in the mortgage loan using monthly energy savings.

Energy Efficiency Mortgages

Uses the energy savings from a new energy efficient home and capitalizes the enegy savings in the appraisal.  By increasing the debt-to-income qualifying ratio, homeowners can qualify for a larger loan amount - thereby increasing buying power.