Because of the proven energy savings, certain mortgage companies offer "Energy Efficiency" Home Mortgages which take into consideration the decrease in energy costs. This allows you to qualify for a higher mortgage payment. That means you're taking that same money which would be going to the utility companies and instead putting into your home!
The Energy Mortgage
An Energy Efficient Mortgage (EEM) is a mortgage that credits a home's energy efficiency in the mortgage itself. EEMs give borrowers an opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans. Therefore the borrowers qualify for a larger loan amount as well as an energy-efficient home.
A recent analysis by the Environmental Protection Agency (EPA) confirmed that energy efficient mortgages can have a dramatic effect on increasing opportunities for home ownership. The analysis found that an average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage.
To get an EEM a borrower typically has to have a home energy rater conduct a home energy rating study before financing is approved. This rating verifies for the lender that the home is energy efficient.
Energy Improvement Mortgages
These mortgages allow borrowers to include the cost of energy-efficiency improvements to an existing home in the mortgage without increasing the down payment. They allow the borrower to use the money saved in utility bills to finance energy improvements. These mortgages are sponsored by federally insured mortgage programs (FHA and VA) and the conventional secondary mortgage market.