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FAQ #39015

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What is an Energy Efficient Mortgage?

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An Energy Efficient Mortgage is a financing option for an energy efficient home, or a refinancing tool for improvements that increase efficiency. Based on the assumption that money saved on utilities can be used to make a larger house payment, homeowners of efficient homes can qualify for a larger mortgage with an Energy Efficient Mortgage. A Home Energy Ratings Report or Energy Audit from a trained professional is required to identify the current efficiency of a home, suggest changes to increase efficiency and estimate the costs of the changes, as well as estimate savings. Most homes qualify for an Energy Efficient Mortgage. Buyers who qualify for insured home mortgages should qualify for an Energy Efficient Mortgage if they are purchasing a home with an efficient rating.

The U.S. Department of Energy has more information about an Energy Efficient Mortgage

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