Energy Efficient Mortgage Loan

Nowadays, new home buyers look for energy efficient homes when shortlisting their homes. Good news for potential buyers that are looking for energy efficient homes! The government is providing assistance to potential home buyers that opt for energy efficient homes. 

The Energy Efficient Mortgage Loan program is an FHA insured mortgage loan that helps current or potential homeowners significantly lower their monthly utility bills by enabling them to incorporate the cost of adding energy efficient improvements into their new home or existing housing. (Source: www.fha.com)

It is also used to purchase an energy-efficient new home or to purchase or rehab an existing home in need of energy improvements.  If the borrower is purchasing a new home, the home must be rated by a qualified energy "rater" to qualify for the loan.  

Typically, the loan is increased by 5% of the purchase price if a borrower applies for the EEM loan.

The borrower must meet FHA's Section 203(b) income requirements and can make the monthly mortgage payments for him/her to qualify for the EEM loan. Maximum amount of $200 - inspection report cost, may be included in the mortgage. 

Energy efficient home not only saves you money but it is also good for the environment in the long run.  If you have any questions, don't hesitate to contact me.

Tax Credits for Energy Efficient Home Improvements

The increasing energy prices and the growing concern about the effects of climate change are factors why home owners are opting for a well designed, energy efficient home.  An energy efficient home reduces energy bills and helps clean the environment. Additional plus side of having an energy efficient home is the tax credits applied on energy efficient home improvements.  The tax credits are deducted from your tax bill and if your credit is larger than your tax due, you can get a refund. On the other hand, deductions are deducted from your income, so there's less income to tax.

Renewable energy source tax credits for wind, solar and geothermal improvements are available through 2016.

Replacing windows, doors and skylights will give you a 10% credit up to $200 on windows and $500 for doors and skylights on the cost of materials only. Installation excluded.  

Insulation will give you 10% credit up to $500 on the cost of the materials only. Installation excluded. 

Tax credit for non-solar water heaters is a $300. Qualifying waters can include gas, oil, propane and electric heat pumps.  Using normal water heaters can add up to 25% of the energy used in your home.

Solar energy systems, small wind turbines and geothermal heat pumps get you a tax credit of 30 percent off the cost of the system, including installation, with no ceiling on the amount of the tax credit. (Source: www.realtytimes.com)

It's not difficult to cut on energy costs in your home. By making minor changes in your home, you can make significant savings.  Over time, those savings will add up while being environment friendly.  Not to mention, the government rewards on the energy 

efficent improvements done to your home.

For more information on how to make your home more energy efficient

http://www.akenergyefficiency.org/energy_assessment.

If you want to know more about rebates and tax credits you can benefit from, you can visit http://www.energysavvy.com/rebates/ and http://energy.gov/savings?rebate_eligibility=0&rebate_savings_for=0&rebate_provider=0&rebate_state=7879