Energy Efficiant Mortgage Scheme
A Home Buying Article Contributed by Mark Vanner
What are Energy Efficient Mortgage Schemes?
Energy Efficient Mortgages or EEM's were introduced by the Federal Government to encourage home owners and prospective buyers to reduce the use of energy consummation and pollution. Energy Efficient Mortgage schemes allow the consumer to lower energy bills by installing energy saving products in their homes, financed through Energy Efficient Mortgages.
Energy Efficient Mortgages - Benefits for Home Buyers.
Energy Efficient Mortgages allow home buyers to qualify for higher mortgage loans that were perhaps out of reach before. The reason for this, is that energy efficient homes are widely recognized amongst banks and lenders to drastically reduce energy bills therefore saving the homeowner money and allowing a higher rate of savings. This scheme is especially beneficiary to first time home buyers or those with a lower income who are unable to qualify for standard mortgages. Besides saving you money by reducing your monthly bills, this scheme also helps to protect the environment.
Energy Efficient Mortgages - Benefits for Sellers.
For sellers, the main advantage of selling your property as an energy efficient home is that you will attract more potential buyers whilst increasing its market value. Because Energy Efficient Mortgages are more accessible to the average home buyer, the sale of your property will generate more interest from buyers.
How Do I Qualify for a Energy Efficient Mortgage Scheme? .
If you are already a homeowner looking to transfer to an Energy Efficient Mortgage your property needs to meet a number of requirements set out by the Home Energy Rating System also known as HERS. The Energy Rating System will evaluate your current energy usage, comparing it to other houses and offering advise on purchasing energy efficient products to reduce your monthly bills.
For new home buyers, eligibility for this mortgage scheme depends on your income and capability to meet the mortgage repayments. As with home sellers, buyers will also need an estimated cost for home energy improvements from an Energy Rating consultant. The consultant should also supply new home buyers with a projected figure for money likely to be saved by living in an energy efficient home.
The Rating consultants main inspection should cover the evaluation of products such as window types, insulation, appliances and local climates before making a decision. Home energy efficiency is rated on a scale between one and one hundred by the rating consultant. The higher the number the more energy efficient your property is.
How Can I Afford to Upgrade My Home to an Energy Efficient Property?
In the majority of cases, the cost of home improvements recommended by the Energy Rating System can be included in your mortgage loan, as long as the total cost for these improvements are less than the estimated savings you will make as projected by the Energy Rating System.
Where Can I Apply for an Energy Efficient Loan?
The Federal Housing Administration or FHA have made approved energy efficient mortgages available throughout the United States at mortgage lenders, banks and savings and loan associations. If you are seeking more advice, it is recommended, you contact one of the above institutes who will be willing to help.
