Lenders

Welcome to your energy efficient financing resources page.This type of financing can help you build your business. Energy-efficient mortgages (EEMs) enable your customers to qualify for higher-priced homes because it costs less to live in a more expensive home with built-in energy-efficiency features than to live in a less expensive one that has high energy costs.

Advantages of an EEM

• It increases the debt-to-income ratio used by the lender to qualify the buyer for the mortgage.
• It typically qualifies the buyer for a higher-priced home.
• It increases the buyer’s ability to contract with the builder for added features.
• It typically permits the buyer to realize a lower monthly payment for the combined cost of the mortgage and energy usage.
• Nationally, statistics show that almost 7 percent more home buyers will qualify for the purchase of a new home using an EEM.
• EEMs are sponsored by both federally insured mortgage programs as well as conventional secondary mortgage products.

How can I know if a home qualifies for an EEM?

One quick solution is to shop for homes built according to the energy right Program. These homes have been built with energy-efficient features that lower the cost of heating, cooling, and water heating. If a home is not built energy right, you may be required to get an independent certification (audit report) stating that the home was built with the energy-efficiency improvements necessary to qualify the home for financing using an EEM.

Comparison example

With a monthly income of $3,000, a home buyer, at today's low mortgage rates, might be expected to qualify for a maximum mortgage of $93,678. If the buyer were to purchase a home with documented energy-efficiency features that qualify for a 2 percent income-to-debt ratio by using an EEM, the buyer could be looking at a maximum mortgage of $100,400. That's an increase of over $6,700 in purchase price.

Homes built energy right can qualify most buyers for EEMs, which are offered by several lenders in the Tennessee Valley. Ask your mortgage lender about EEMs.

For more information on Energy Efficient Financing and how it can help you as a lender, go to Residential Energy Services Network.

Financing Forms

Federal UCC Form (Microsoft Word Format)
Note: This form requires additional state-specific information. See the following links for information on these requirements:
TN state UCC Forms
AL State UCC Forms
MS State UCC Forms
GA State UCC Forms
KY State UCC Forms

Specification Sheets

Monthly Loan Payment Amounts 7% Interest Rate
Monthly Loan Payment Amounts 9% Interest Rate

Resources

RESNET Lender’s Corner
RESNET Energy Efficiency Financing Overview
FannieMae EEM Products
U.S. Department of Housing & Urban Development EEM Program
U.S. Department of Energy, Financing An Energy Efficient Home
Energy Star Mortgage
Glossary of EEM Terms