Our Environment

New homebuyers that are looking for a way to increase their buying power and offset energy costs are turning to energy efficient mortgages. These “green” mortgages translate the money saved on energy costs into income, which allows the homebuyer to qualify for a more expensive home or to borrow additional funds for home improvements. Most major underwriters in the US offer green mortgages. Fannie Mae, Freddie Mac, FHA and HUD all underwrite loans with green elements so options for the new homebuyer are not as limited as they were a decade ago.

To qualify for an energy efficient mortgage, you must obtain a Home Energy Rating System (HERS) report on the home that you wish to buy. This may cost several hundred dollars on an older home but many new homes are rated after construction.

Although green mortgages have been around for over 20 years, they are just now seeing an increase in popularity and are starting to hold their own when compared to traditional mortgages. Choosing a green mortgage does not mean that you must settle for an unfavorable interest rate. When shopping around for your next mortgage, use a mortgage calculator to help you determine which mortgage will be better for you in the long run.