Financing for Energy-efficient Homes

Energy Efficiency Mortgages (EEMs)

By choosing to purchase an ENERGY STAR qualified home, you have opened the door to increased financing options. Ask your preferred lender about financing for ENERGY STAR qualified homes.

These lenders have participated in an energy efficient mortgage education course. Additional lenders may be found on the following Web sites:
www.texasveterans.com
www.natresnet.org

What is an EEM?

EEMs recognize that energy-efficient homes cost homeowners less to operate on a monthly basis than standard homes because they use less energy. Homebuyers who chose energy-efficient homes can afford to spend more on their housing expenses because they will likely spend less on their energy costs. The EEM benefits those buying new, energy-efficient homes or those purchasing existing homes that need energy improvements.

What information does my lender need to demonstrate that my home is energy-efficient?

Mortgage lenders need the rating report generated when the HERS Rater determines the home’s final HERS score. The rating report compares the energy-efficient home against a similar home meeting the minimum energy requirements of the International Energy Conservation Code (IECC) (often called the “reference home”). The rating report will provide the following data required by the mortgage lender for an EEM:

• Estimated monthly energy savings

• Value of the energy efficient measures – know as the Energy Savings Value

For more information on EEMs for new energy-efficient homes, please visit www.natresnet.org.

Can you afford NOT to own an ENERGY STAR qualified home?

Texas Veterans Land Board Loans (TVLB)

Are you a veteran? Texas Veterans Land Board offers reduced interest rate loans for Texas Veterans. All new, single family residential construction must earn the ENERGY STAR to qualify for a TVLB loan.

For more information visit www.texasveterans.com or Call 1.800.252.VETS.