Energy-efficiency upgrades to an older or newly purchased home are about more than just lowering utility bills. They’re also about keeping your family healthy. Now, thanks to the HomeStyle® Energy mortgage, you don’t have to choose between a healthy home and your budget.
-Bundling updates into your HomeStyle Energy Mortgage empowers you to pay for energy efficiency updates over the life of your mortgage.
-You could pay as little as 3% down at purchase, get competitive interest rates (compared to PACE loans and other financings), and have the security of cancellable mortgage insurance once you reach 20% equity in your home. You can also take advantage of mortgage tax deductions.
-You set yourself up to have more consistent energy bills—no big surprises each month.
Convenient
-When using HomeStyle Energy to purchase a home, you can make the energy efficiency updates you need along with your purchase.
-You get to work with the same lenders you’re already working with for your mortgage or refinance.
Simple
-There’s only one financing application and one payment to keep track of each month because the cost of energy efficiency updates is bundled into a HomeStyle Energy mortgage.
-It’s available nationwide through most lenders and enables you to bundle existing energy improvement debt from PACE loans, credit cards, and home equity credit lines to further simplify monthly bills.
-to further simplify monthly bills.
What improvements are covered by the HomeStyle Energy mortgage?
Improvements include:
-Smart thermostats
-Heating, ventilation, and cooling systems (HVAC)
-Basic weatherization and insulation
-Energy-saving windows and doors
-Water heaters
Learn how energy efficiency helps your family.
Improvements include:
-Retrofitting foundations
-Adding retaining walls
-Removing bushes/trees in fire-prone areas
-Storm surge barriers
-Radon remediation devices
-Storm windows and doors
Buying a home with HomeStyle Energy
When you're buying a home, HomeStyle Energy allows you to use up to 15% of the “as-completed” value of the property (that's the appraised value of the home once the upgrades are completed) for new energy improvements. (Learn more about the benefits of an energy-efficient home here.)
For example, an eligible buyer with a home valued at $100,000 after upgrades can receive up to $15,000 (15%) from the mortgage transaction. Improvements above $3,500 may require a Home Energy Reporting System (HERS), Department of Energy (DOE), or comparable report to ensure that the right improvements—the ones that will make a difference for your home—are the ones being made.
Refinancing a home with HomeStyle Energy
Homeowners who want to make energy-saving improvements or who’ve previously made those types of updates may qualify for a limited cash-out refinance, for up to 15% of the home’s value. This means you would refinance your current home loan into a new mortgage to access the equity in your home. The equity amount would then be used to pay for new energy improvements or to pay off other energy improvement-related debt.
