Energy-efficient mortgages (EEMs), which allow a borrower to obtain a larger loan to cover the capital cost of energy-efficiency improvements, can be obtained, but are not routinely volunteered by lenders. The rationale supporting EEMs is that, due to monthly energy savings resulting from the improvements, the borrower can make a larger monthly mortgage payment.
The Database for State Incentives for Renewables and Efficiency (DSIRE) describes several energy-efficient mortgages, including ones offered through the Federal Housing Administration (FHA) and Department of Veterans Affairs (VA). Though “private,” the government-controlled Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae) also have EEM programs (see Access).
