What are the benefits of Energy Improvement Mortgages (EIMs)?
Energy improvement mortgages allow buyers of older homes to roll the costs of making energy improvements right into the mortgage. An energy rater inspects the property and recommends cost-effective improvements—such as duct improvements, increased insulation levels, and/or more efficient windows. The lender places the money for those improvements into an escrow account, and when the improvements are made another energy rating is taken. If the work was performed satisfactorily, the funds are released to pay for the work. For specifics on loan requirements and terms, go to the Web sites of the various mortgage sponsors including Fannie Mae, www.efanniemae.com Freddie Mac, http://www.freddiemac.com, the FHA, www.hud.gov/progdesc/energy-r.cfm, and the VA, www.homeloans.va.gov.
