The weather outside is frightful, but your home energy bills don't have to be. Ever heard of a green mortgage? And I'm not just talking paper. I'm talking about an EEM, or Energy Efficient Mortgage. In a nutshell, an EEM allows a buyer to borrow more than 80% of the property value (sometimes as much as 10% of the purchase price) to provide capital for energy efficient improvements.
As the single largest housing expense after a mortgage payment, your utility costs can have a direct impact on how large a mortgage you can afford. You can save money on the cost of utilities by purchasing new enerty-efficient heating and cooling systems or by making home improvemens such as weatherizing and insulating older homes and these improvements can save you money through lower utility bills.
As a new or current homeowner, you may be able to use FHA's EEM to finance the cost of these improvements. In the following example, a homeowner can afford to purchase $33,000 "more home" if the home is made to be energy efficient. As you can see, even with the additional $33,000 purchase price, the total monthly payment including utilities is less expensive than the more affordable home. You can learn more about EEM's at www.energyefficientflathead.com or www.flyreeltor.com.
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