Modern Earth Finance

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Energy efficient improvements can reduce energy costs significantly.

An Energy Efficient Mortgage calculates the benefits of this increase in cash flow ahead of time and allows the client to qualify for a larger mortgage that covers both the property and the cost of the energy efficient upgrades. An Energy Efficient Mortgage enables the homeowner to qualify for a larger loan.

Modern Earth makes getting an Energy Efficient Mortgage easier. We arrange for the HERS AUDIT that provides an energy profile of the home and suggests energy upgrades that would be ‘cost effective’ (meaning they cost less than the energy they will save).

TYPICAL EEM
FHA Energy Efficient Mortgages allow the homeowner to borrow up to 5% of the loan amount or $8000, whichever is higher, above the purchase price for qualified improvements. ‘Weatherization’ improvements can increase this extra amount further, though under different guidelines. Contact us for more information.

We supervise the loan process from documentation through implementation of the energy efficient improvements – and testing that confirms they were done correctly.

GOOD NEWS – LOAN LIMITS GO UP THRU 2008
Both the FHA and VA Energy Efficient Mortgage programs have increased their upper loan limits. Upper limits are determined county by county. Loan limits are posted at www.fha.gov.

The new limits make these programs significantly more useful to homeowners who want to make ‘cost effective’ improvements. Each program has different allowances and requirements. These higher limits disappear after December 31, 2008. Contact us for details.

FHA SOLAR:
FHA also has a loan with more flexible limits if the loan is to pay for solar PV or solar water heating installation.