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According
to
the
Environmental
Protection
Agency,
the
average
homeowner
spends
close
to
$1,300
a
year
on
utility
bills
in
the
United
States.
By
making
energy-efficient
home
improvements,
you
can
cut
this
cost
in
half
(depending
on
the
nature
of
the
improvements
and
the
climate
of
your
hometown).
You
can
also
get
a
break
on
your
mortgage,
courtesy
of
the
federal
government.
The
Federal
Housing
Administration
(FHA)
runs
an
initiative
called
the
Energy
Efficient
Mortgage
(EEM)
program
that
encourages
homebuyers
to
go
green.
Launched
as a
pilot
in
1992,
the
EEM
program
went
nationwide
three
years
later.
According
to a
recent
report
by
the
U.S.
Department
of
Housing
and
Urban
Development
(HUD),
the
FHA
insured
26,000
EEMs
in
2003.
Energy
Efficient
Mortgages
(also
called
“green
mortgages)
have
three
functions:
they
are
designed
to
encourage
energy
conservation,
reduce
pollution
and
make
homeownership
more
affordable.
EEMs
apply
to
new
and
existing
homes.
The
EEM
program
is
one
of
several
initiatives
from
the
FHA
that
insure
mortgage
loans,
thus
encouraging
lenders
to
give
mortgage
credit
to
people
who
might
not
otherwise
qualify.
Only
FHA-approved
lending
institutions,
such
as
banks,
savings
and
loan
companies
and
mortgage
firms
can
make
loans
that
are
covered
by
EEM
insurance.
You
can
apply
to
the
EEM
program
if
you
qualify
for
the
FHA’s
income
requirements
and
are
able
to
make
the
appropriate
monthly
mortgage
payments
on
the
property
you
have
your
eye
on.
The
value
of
your
energy
improvements
and
estimate
of
energy
savings
are
determined
via
a
“home
energy
rating
system ”(HERS).”
A
simpler
way
to
tally
your
energy
savings
is
to
hire
an
energy
consultant
to
look
over
your
house.
You
can
include
some
of
the
cost
of
this
energy
inspection
into
your
mortgage.
Homebuyers
can’t
just
turn
the
thermostat
down
and
expect
to
qualify
for
an
EEM.
Your
energy
saving
improvements
have
to
be
cost-effective.
They
might
include
putting
in
replacement
windows,
energy-efficient
appliances,
a
solar
hot
water
heater,
etc.
The
cost
of
the
home
improvements
has
to
be
less
than
the
total
dollar
value
of
energy
saved
over
the
lifetime
of
the
improvements.
The
amount
of
improvements
eligible
for
financing
as
part
of
the
mortgage
is
five
percent
of
the
property’s
value,
not
to
exceed
$8,000.
For
a
single-family
home,
the
maximum
mortgage
limit
is
$160,950
plus
the
expense
of
eligible
energy
efficient
improvements
(limits
may
vary
across
the
country)
(source:
FHA).
Getting
an
EEM
means
you
don’t
have
to
apply
for
an
additional
loan
for
energy
improvements
when
buying
a
house.
A
recent
study
by
the
Joint
Center
for
Housing
Studies
estimates
that
250,000
new
homebuyers
could
qualify
for
an
EEM
on
an
annual
basis.
Applications
have
to
be
submitted
to
the
local
HUD
office
in
your
region
through
an
FHA-approved
lending
institution.
For
more
information:
U.S.
Department
of
Housing
and
Urban
Development
information
on
EEMs
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
See
DOE/HUD
Initiative
on
Energy
Efficiency
in
Housing:
A
Federal
Partnership,
Program
Summary
Report
http://www.huduser.org/
Contact
Me
I can help you with every
aspect of buying or selling your home because I’m
experienced, because I am a Better Homes and Gardens
Rand Realty Real Estate Professional . . .and because I
care.
As
your
Better
Homes
and
Gardens
Rand
Realty
Sales
Professional,
I
will
provide
you
with
the
information
you
need
to
make
an
educated
decision.
The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration.
For assistance with any of your real estate needs, please contact me, whether it's to get started on helping you realize your goals and dreams, or just to ask a question - no pressure, no hassle, no obligation - just a friendly conversation. I would welcome the opportunity to make a difference for you. |
