Building A Green Home? Go With An Energy Efficient Mortgage

There are several different types of energy efficient mortgages which a person is able to apply for. These types of loans can either be used for purchasing an already existing energy efficient property or to allow you to make improvements to your home in order to make it more energy efficient.

The types of mortgages that are available are the conventional energy efficient mortgage (EEM), the FHA EEM and the VA EEM. Below we take a look at what these are and who can actually apply for one if they want.

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.

VA EEM - This particular type of mortgage is only available to those people who are either currently serving as military personnel or are reservists or can shown that they are a veteran. As with the FHA, this type of EEM can be used to help make improvements to a property. Currently a person is able to borrow between $3,000 and $6,000 to make such improvements to their home in order to make it more energy efficient.

When you take out such mortgages or loans in order to make improvements to your home there are certain benefits to be gained from using the ones that we have mentioned above. Certainly making improvements to your home can help in the future to save on your utility bills, but it can also increase the value of the home if you should decide to sell it in the future. Below we take a look at a couple of other benefits to be gained from taking out these kinds of loans or mortgages.

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.

Another benefit is that taking out an energy efficient mortgage you will find that you can include the cost 111Cof any improvements that you wish to make within the sum that you wish to borrow. This means again that you are going to be saving yourself money and you are then able to pay back the sum borrowed over the lifetime of the mortgage rather than over a much shorter period.

An Energy Efficient Mortgage, also known as an EEM, can be an important resource in your quest 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 green home.

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