There is renewed interest in Energy Efficient Mortgages (EEMs) as home heating costs are expected to increase by 30% this winter and the "frothy" real estate environment has priced some buyers out of the market. Green mortgages have been available since the 70's but few lenders were willing to offer them because of the red tape involved. Prior to 2003 lenders had to underwrite them individually and it wasn't worth the inconvenience.
A new home will qualify if the builder has certified that it was designed and built to energy efficient standards. Or, for both new and existing homes a home energy rater can issue a Home Energy Rating System (HERS) report that estimates both the energy savings and/or suggests improvements. A HERS report costs between $150 - $400.
Having an energy efficient home will lower your utility bill, increase the resale value of your home, and earn you tax credits through the new Energy Policy Act.
Fannie Mae is currently the largest provider of EEMs.
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