Consider an Energy Efficient Mortgage When Buying Methow Valley Real Estate

The future high costs of energy and climate change affects the way people are living and doing business these days. Many people feel comfortable in their energy efficient homes but is that where it stops? 

Buyers can now start talking to their lenders about getting an Energy Efficient Mortgage as well.  The process of getting an EEM starts with an energy star rating, or acceptable documentation. Then the borrower decides what improvements they want and they apply for the loan.

For Example:  A borrower can finance cost effective energy saving measures and also stretch debt to income qualifying ratio increasing the borrowing power. The unusual mortgage then allows buyers to include the costs of energy improvements into the mortgage. The value of the home is adjusted by the value of the energy efficient upgrades.

The Energy Efficient Mortgage (EEM) is typically used to purchase a new home that is already rated energy efficient. Energy Star homes are naturally qualified homes. Homes not rated usually require a certified Energy Star inspector, an independent certified residential energy professional, to conduct an extensive evaluation of the home's energy use to produce a home energy rating.

This type of energy rating is similar throughout the United States. The national guidelines are referred to as HERS guidelines - the Home Energy Rating System. This will need to take place before the financing is approved. It provides the lender with the estimated monthly energy savings and the value of the energy efficiency measures - known as Energy Savings Value.

The Energy Improvement Mortgages (EIM) was developed so buyers of an existing home could finance more money to make their home more energy efficient. No need for more funds for down payment, the EIM is included in the mortgage payment for existing homes that need energy efficient improvements without increasing the down payment.  EIM's are available to homeowners wanting to refinance their energy improvements too.

Energy Efficient Mortgages are nationally underwritten by FHA VA and Conventional and secondary mortgage institutions market lenders Fannie Mae and Freddie Mac.

Frugal home owners and buyers are applying for the EEM today and they are financing and spending more on housing expenses initially because they know they will spend less on their energy costs over time. It is both the health of their families, and the future high costs of energy that concerns many people today.

If you are interested in learning more about EEM or other loan options for buying Methow Valley real estate please don't hesitate to contact us below. We would be happy to set you up with the right agent and lender. Learn more about these types of loans as well: Remortgages  - Equity release  - Bridging Loan