Homeowners Take Advantage Of 'Green' Loan Incentives

"Fannie Mae, the Congressionally chartered private company that works with lenders to back mortgages for low- and moderate-income Americans, is the prime mover of "green" mortgages through its EEM program. To qualify for the program, homeowners must either buy a new energy-efficient home, or commit to upgrades of an existing building as recommended by an inspector certified through the Home Energy Rating System (HERS). While HERS inspections can cost as much as $400, the projected savings from energy efficiency are considered part of the borrower's income and can help homebuyers qualify for larger mortgages. By increasing borrowing power, the EEM allows homeowners to fold the costs of energy efficiency into the total mortgage amount."

Thanks to Brenda Meyer