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Consider An Energy Efficient Mortgage For Your Green Home |
By:
John Wyeth |
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Consider An Energy Efficient Mortgage For Your Green Home
John Wyeth
An energy efficient mortgage is available to those who are looking to purchase a home which has had specific energy efficient improvements made to it or a home that was originally built as energy efficient. Today in the United States, you have the choice of three different types of energy efficient mortgages that one can now choose from.
As mentioned, there are different types of energy efficient mortgages (EEM) one can apply for. These are the conventional EEM, the FHA EEM and the VA EEM. Below we take a quick look at what each one of these types of mortgages are.
Conventional EEM - This can be used by anyone and the amount that one borrows will depend on how energy efficient the home or the improvements made are considered to be. The costs of the energy efficient components of the home are directly transferred to the bottom line valuation of the home during the appraisal process.
The FHA Energy Efficient Mortgage - This type of loan is taken out by those people who are looking to make improvements to the house they currently live in to make it more energy efficient. In most cases, they are allowed to borrow up to 100% of the total costs of the works that they wish to carry out. But with this type of loan the maximum amount that one is actually allowed to borrow are $8,000 and no more. Normally homes that already qualify as an energy star homes are granted such loans and this is why they are sometimes referred to as energy star mortgages as well.
The VA Energy Efficient Mortgage - The only people who can apply for this type of loan are those who currently serve as military personnel, or who are classified as reservists or veterans. As with the FHA EEM, there is only a set sum of money that one can borrow in order to make improvements to a home. Currently the maximum amount that such people are able to borrow is $6,000.
Actually, taking out such a mortgage can provide the borrower with a number of different benefits and below we take a look at just what some of these are. Certainly making energy efficient improvements to the home can not only save on your bills but will also increase the value of the property as well as making it more saleable in the future.
The savings, which you make on the energy costs of your home, actually means that you are able to apply for a much larger sum of money to borrow. So what this means is that you may find that you are actually able to afford the kind of home for you and your family that you did not first think was possible.
You will find that with an energy efficient mortgage you can actually include the costs of any improvements that you wish to make to the property in to the total amount that you wish to borrow. This means that you can pay for all the improvements as long as they are valued at around 15% of the total value of the property and then can be repaid over the lifetime of the loan.
Anhttp://homegreenhome.info/ever-heard-of-an-energy-efficient-mortgage) Energy Efficient Mortgage can be valuable tool when seeking to construct a green, energy efficient home. John Wyeth writes informative articles for homegreenhome.info - a blog about building, financing, powering and living in your http://homegreenhome.info/ green home.
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Article Source: http://www.statssheet.com/articles/article71814.html |
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