Energy Improvement Loans

Progress Energy Carolinas provides financing to help its residential customers install energy saving products in their homes.  Loans are available for up to $20,000 and have up to a 10-year pay back period.  The program covers the cost of energy efficient heating and cooling systems, storm windows and doors, insulation, and other energy-saving home improvements. All work must be completed by an approved contractor.  For more information visit, Progress Energy Financing.

Energy Efficient and Energy Improvement Mortgages (EEMs and EIMs)

There are generally two mortgages that specifically deal with energy efficiency or improvements:

   1) Energy Efficient Mortgage

   2) Energy Imrpovement Mortgage

An Energy Efficient Mortgage (EEM) is a mortgage that takes a home’s energy efficiency into account.  EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans, thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.  The term EEM is commonly used to refer to all types of energy mortgages including Energy Improvement Mortgages (EIMs), which are used to purchase existing homes that will have energy efficiency improvements made to them.

There are several types of these mortgages, including:

• Conventional
• Federal Housing Authority (FHA)
• VA Energy Efficient Mortgages.

There is also a new pilot program called the Energy Star Mortgage, which aims to streamline the process of getting an EEM or EIM.  If you are considering using one of these mortgages, it is important to talk about this with your real estate broker and lender before putting a house under contact because there are specific steps that need to be taken to use these mortgage programs.  Request to speak with a MOSAIC Community Broker for more information.