Energy Efficient Mortgages: Increase Your Property’s Value

Energy Efficient Mortgages

Energy Efficient Mortgages (EEM) are specialized home loans that provide funding for energy efficient improvements in new or existing homes. By incorporating the costs of energy-efficient improvements into the loan, EEMs increase the home’s value and reduce long-term utility costs. These mortgages enable borrowers to pay for energy upgrades through their monthly mortgage payments. EEMs are administered by Federal government sponsored enterprises, lending institutions, and state and local governments. 

Process

To receive an EEM, the home must receive a Home Energy Rating, completed by a certified HERS Rater. The HERS rater helps determine the most suitable components or upgrades for the new home. With energy efficient equipment, the decrease in utility costs caused by the energy efficient improvements will offset the cost of the increase in loan amount. Buyers can borrow up to 15% more than the appraised value of the home if the home does not have the energy efficiency components. Combined with an allowable LTV up to 97%, builders of energy efficient homes can charge more without pricing out potential buyers.

EEMs, Energy Star & Leyton

At Leyton, our energy efficiency experts work closely with builders and developers to help residential properties undergoing construction achieve Energy Star Certification. This certification is a prerequisite for the 45L New Energy Efficient Home Tax Credit, qualifying  the builder or developer for up to $5,000 per home. By combining, an EEM, an Energy Star certified home, and the 45L tax credit, builders and developers can maximize the benefits from sustainable construction practices. 

Benefits

Eligible Lenders

Eligible Properties

Eligible Energy Efficient Components