Looking for a way to increase your home-buying power and decrease your environmental footprint at the same time? Well, homebuyers who plan to purchase new energy-efficient homes or improve efficiency in older homes can benefit from an Energy Efficient Mortgage (EEM). Basically, EEM is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home. Therefore, the expected energy cost savings are considered by the lender as income, allowing borrowers to qualify for larger mortgages.
Benefits:
- Helps you qualify for a bigger loan on a better home.
- Reduces pollution and encourages sustainable building and renovations.
- Saves you big bucks on energy bills.
- Improves the resale value of your home.
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