Loans For Energy Efficiency Improvements

Most energy efficient financing programs offer both types of eems as well as home improvement loans for making energy efficiency upgrades to your existing home.

Loans for energy efficiency improvements.

Energy efficient mortgages eems are similar to a standard home mortgage in that they use your property as collateral for a loan. With an eem you can purchase or refinance a home that is already energy efficient or you can purchase or refinance a home that will become energy efficient after energy saving improvements. Unlike conventional loans they wouldn t face income requirements or credit checks and the obligations would stay with properties. Energy efficient mortgages can be used to make energy efficient improvements in one or two unit existing and new homes.

The improvements can be included in a borrower s mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. Under the proposal customers would be able to borrow money for energy efficiency improvements and repay it through a line on their monthly utility bill. Energy efficiency loans are unsecured loans more like the personal loans or lines of credit that you can take out from a creditor. Home energy rating a home energy rating will help you qualify for an eem by telling you and the lender how energy efficient the home is.

If your interior windows are in good shape then installing storm windows is a quick way to increase your energy efficiency without going through the expense and the mess of ripping out your current windows says celia kuperszmid lehrman deputy home editor at consumer reports.