Green Building 101: How Energy Efficient Mortgages (EEM) Can be a Solution to the Housing Market Crisis
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The U.S. housing market, like most of the economy currently, is a bit of a mess. One thing that can help get you a better loan is applying for an Energy Efficient or Energy Improvement Mortgage (EEM). The energy-efficient nature of the house is also a big plus for a variety of reasons, the obvious being money saved on monthly energy bills. Besides that, however, having an energy-efficient home also increases its resale value substantially. Most importantly, however, an energy-efficient home is much better for the environment and the planet. So with an EEM you can save yourself some money and more easily afford a nicer home, all while also doing your part to help the Earth.
The U.S. housing market, like most of the economy currently, is a bit of a mess. People are looking for any way to help make it easier for them to pay for their house or purchase a new home. One thing that can help get you a better loan is applying for an Energy Efficient or Energy Improvement Mortgage.
How an Energy Efficient Mortgage (EEM) Works
An Energy Efficient Mortgage (EEM) is a mortgage that credits the home’s energy efficiency in the mortgage itself. An EEM allows you to finance energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans, meaning that you can receive a larger loan than you would with a standard mortgage.
The monthly dollar amount of energy savings adds to the monthly payment that the borrower qualifies for, so the more energy-efficient the house is, the larger the loan the applicant can qualify for. An EIM is much the same, however it is used to obtain a loan in order to finance energy-efficient improvements on an existing property.