The Complete Guide to Getting an Energy Efficient Mortgage in Urbandale, IA
What is an Energy Efficient Mortgage (EEM)?
If you are looking to buy a home or refinance in Urbandale, IA, and want to make eco-friendly upgrades, an Energy Efficient Mortgage (often called a Green Mortgage) might be the perfect solution.
An energy efficient mortgage allows homeowners and buyers to roll the cost of energy-saving improvements directly into their home loan. This means you can upgrade your insulation, install solar panels, or upgrade your HVAC system without draining your savings.
At the Tyler Osby Team at Fairway Independent Mortgage, we are experts at providing second opinions on energy efficient mortgages. Whether you are exploring a FHA purchase loan or a standard conventional fixed rate mortgage, we can help you navigate the green mortgage landscape.
Why Choose a Green Mortgage?
- Lower Utility Bills: Energy improvements reduce monthly energy costs.
- Increased Home Value: Eco-friendly homes often sell for a premium.
- Convenient Financing: Combine your upgrade costs into one simple monthly payment.
Types of Energy Efficient Mortgages: FHA, VA, and Conventional
When it comes to securing an energy efficient mortgage in Iowa, you have several excellent loan options to choose from. Let us break down the three main types of EEMs available to Urbandale residents.
FHA Energy Efficient Mortgage
The FHA EEM program allows borrowers to add energy improvements to a new or existing FHA purchase loan or refinance. The amount you can finance is typically based on the energy package’s cost-effectiveness, determined by a Home Energy Rating System (HERS) report. This is a fantastic option for first-time homebuyers looking to make immediate green upgrades.
VA Energy Efficient Mortgage
Available exclusively to eligible veterans and active-duty military personnel, the VA EEM lets you add up to $6,000 to your VA loan for energy-efficient improvements. Whether you are installing storm windows, solar heating, or a new heat pump, this program offers competitive rates with no down payment required.
Conventional Energy Efficient Mortgage
If you prefer a conventional fixed rate mortgage, Fannie Mae’s HomeStyle Energy program or Freddie Mac’s GreenCHOICE Mortgages are excellent choices. These conventional EEMs allow you to finance up to 15% of the property’s as-completed appraised value for energy upgrades. They are ideal for borrowers with strong credit scores looking for flexible financing options.
| Loan Type | Max Upgrade Financing | Key Requirement | Best For |
|---|---|---|---|
| FHA EEM | Up to 5% of property value (limits apply) | Home Energy Rating System (HERS) report | First-time buyers needing flexible credit options |
| VA EEM | Up to $6,000 (standard) | VA Loan eligibility | Veterans and active military personnel |
| Conventional EEM | Up to 15% of as-completed appraised value | Standard conventional loan guidelines | Buyers with strong credit profiles |
How to Get Started with Your Energy Efficient Mortgage in Iowa
Securing an energy efficient mortgage does not have to be complicated. If you are ready to make your Urbandale home more sustainable, here are the steps to take:
- Schedule a Consultation: Reach out to the Tyler Osby Team. We are the most recommended mortgage lender in Iowa with over 1,300 five-star reviews.
- Get a Home Energy Assessment: A certified energy rater will evaluate your home to determine which upgrades will save you the most money.
- Choose Your Loan Program: Based on your financial profile, we will help you select the best FHA, VA, or conventional EEM.
- Complete the Upgrades: Once your loan closes, funds are placed in an escrow account to pay for the improvements.
Remember, we are experts at providing second opinions on energy efficient mortgages. If you already have a quote from another lender, let us review it to ensure you are getting the best possible terms.
Legal Licensing Information: Fairway Independent Mortgage Corporation, NMLS #2289, Tyler Osby, NMLS #8668, State of Iowa License #19545.
Q1: What exactly is an energy efficient mortgage?
An energy efficient mortgage is a specialized home loan that allows you to finance the cost of energy-saving upgrades into your primary mortgage, resulting in one easy monthly payment.
Q2: Do I need a special home inspection for an EEM?
Yes, you typically need a Home Energy Assessment or a HERS report from a certified rater to qualify the energy improvements for the loan.
Q3: Can I use an EEM to install solar panels?
Absolutely. Solar panels are one of the most popular upgrades financed through an energy efficient mortgage, alongside HVAC upgrades and improved insulation.
Q4: Is an energy efficient mortgage available for refinancing?
Yes, you can utilize an EEM for both purchasing a new home and refinancing your existing mortgage to fund green home improvements.
Q5: Why should I get a second opinion on my EEM?
Different lenders offer varying rates and terms. As experts at providing second opinions on energy efficient mortgages in Urbandale, IA, we ensure you receive the most competitive deal available for your specific situation.Apply Online with the Tyler Osby Team Today