Energy Efficient Mortgage program | Reducing solar energy cost

FHA’s Energy Efficient Mortgage program (EEM) helps homeowners save money on utility bills by financing the cost of adding energy efficiency features such as solar power system and energy efficient programs. The EEM can be rolled into your previous mortgages, thus you only have to make one monthly payment. Because it is tied to the home, interest on the loan is tax deductible, further decreasing the solar energy cost.

There are three different types of Energy Efficient Mortgages:

• Conventional Energy Efficient Mortgage:The Energy Efficient Mortgages as it allows you to borrow up to 15% of the home’s appraised value for improvements such as solar installations.
• Federal Housing Association Energy Efficient Mortgage: This type of Energy Efficient Mortgage is not as powerful as the conventional Energy Efficient Mortgage, but you will be able to take advantage of the benefits of FHA financing. You can borrow up to 5% of your home’s value (not more than $8,000) or $4,000, whichever is greater.
• Veteran’s Administration Energy Efficient Mortgage: This version of the Energy Efficient Mortgage is for retired and currently serving military personnel allowing them to spend up to $6,000 for energy efficient upgrades when purchasing an existing home regardless of the value of the home.