ENERGY STAR Mortgages

What is an Energy Star Mortgages?

 These mortgages focus on home improvements to new and existing homes. The pilot program offers an opportunity to lower energy consumption while making affordable improvements to their home.

 Some examples of energy improvements are:

• Solar heating and cooling systems
• Caulking and weather stripping
• Furnace efficiency modifications
• Clock thermostats
• Insulation (additional or more efficient)
• Water heater insulation
• Storm windows/doors
• Heat pumps
• Vapor barriers

This list is not all inclusive but gives an idea as to what improvements can be added to the loans so that borrowers can pay for them over the life of their loans, while deducting the interest from their federal and state income taxes.

The ENERGY STAR Homes program promotes voluntary partnerships with home-builders to construct new homes that are 30 percent more efficient than the guidelines established by the Model Energy Code - a model national standard for residential energy efficiency. ENERGY STAR Mortgages are competitive mortgages offered by both national and local lenders. They can offer a wide range of preferred terms, including paying for the home energy rating, cash back at closing, competitive interest rates, and the waiving of selected fees.

This pilot program is already underway in Maine and Colorado. Work is underway to include Massachusetts, New York, New Jersey, Pennsylvania, and the District of Columbia. It is a collaboration between the U.S. Environmental Protection Agency, the U.S.Department of Energy, the Energy Programs Consortium (EPC), state energy and housing agencies, as well as the Ford Foundation and the Surdna Foundation.

In order to qualify, the home must either be ENERGY STAR qualified, undergo a Home Performance with ENERGY STAR assessment and improvement process that yields at least a 20% total energy savings via participation in a Weatherization Assistance Program. The home must be single family and owner-occupied.