Energy Efficient Mortgage Loans

Going green, thinking green, buying green and now green mortgages? Guaranteed Rate agrees, sometimes it’s just not easy being green.

All jokes aside, yes, there are green mortgages and you could be saving money every month with the benefits that go along with going totally green.

There are two types of green mortgages:

Energy Improvement Mortgage

This type of mortgage will allow you to upgrade your existing home. The lender will finance the upgrades and take into account the monthly utility savings in turn allowing you to invest more in your home.

Energy Efficient Mortgage

This type of mortgage will allow you to purchase, an already green home, in turn giving you greater buying power as a consequence of lower monthly utility bills.

How Does your Home Qualify?

Qualifying for a green mortgage depends on whether or not you own your home or you are purchasing.

If you own your home: You will need to have your home inspected by a certified home energy professional. The report generated is based on a Home Energy Rating System (HERS).

If you are building or purchasing a new home, the builder will be responsible for certifying and ensuring the home meets green guidelines.

Some of the energy saving areas in your current, or potential, home your energy rater will inspect can include:

  • Exterior Walls
  • Garage and Cellar Floors
  • Ceilings
  • Roofs
  • Attics
  • Foundations
  • Crawlspaces
  • Windows
  • Doors
  • Vents (and ductwork)
  • HVAC
  • Water Heater
  • Thermostat

If you are purchasing and would like to order your own HERS report, contact your local certified energy rater.

What Ratings Mean for You?

A certified rater will inspect your home to verify the energy efficiency of your home compared to others in your area. The rater will also determine what improvements can be made to help pave the way to a greener home.

Once complete, the rater will then give your home a HERS Index Score; this will tell you how efficient or inefficient your home is by the latest efficiency standards.

Who Offers Energy Efficient Mortgage Loans?

Many agencies offer some type of program or allowance for energy efficient homes or energy efficient upgrades you would like to make to your existing home.

While government agencies do not offer loans, they do insure green loan programs. Be sure to speak with your mortgage professional about the energy efficient programs available.

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