Yes, Virginia, there is such a thing as an Energy Efficient Mortgage, and it’s a financial product that coastal residents should believe in. The EEM is available through a Federal Housing Administration program designed to allow homebuyers or homeowners to roll the cost of energy-efficient improvements and appliances into an FHA-insured home purchase or refinance. The idea is that homeowners who save on utilities can afford higher mortgages.
The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or energy consultant. The borrower does not have to qualify for the additional money and does not make a down payment on it. The mortgage loan is funded by a lending institution, and the mortgage is insured by HUD. FHA insures the loans but does not provide them.
To apply for an FHA insured energy-efficient mortgage, follow this link to contact an FHA approved lender: