Energy Efficient Loans

WHAT IS A EEM LOAN? (ENERGY EFFICIENT MORTGAGE)

The EEM loan allows a homeowner or homebuyer to finance the cost of the energy-efficient improvements determined to be “cost effective,” which means that the total cost of the improvements, including any maintenance costs, is less than the total present value of the energy saved over the useful life of the energy improvement.  The maximum cost of improvements that you can add to the mortgage is 5% of the property’s value with a minimum of 4,000 and not to exceed $8,000.

Examples of Improvements:

Replacing a furnace/cooling system
Fixing or replacing a chimney
Insulating an attic, crawl space, and/or pipes and air ducts
Replacing doors or windows
Installing active and passive solar technologies
New energy efficient appliances

A Home Energy Rating System (HERS) provider or energy consultant will complete a measurement of your home’s energy efficiency and provide a report listing recommended cost efficient energy improvements. You may finance the costs of the energy inspection report as part of the mortgage if the entire package, including these fees, is determined to be cost effective.

Federal Tax Credits for Energy Efficiency

Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:

By Colleen Craig

 

 

 

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