Cost-effective upgrades are those which will save more money through energy savings than they cost to install. This could be paid for by the buyer, seller, lender, or real estate agent. Sometimes the cost of the rating may be financed as part of the mortgage. No matter how the rating is paid for, it is a very good investment because an EEM could save you or your buyer hundreds of dollars each year. Value indicated here are for example only, and will vary from home to home.
Many homes qualify for energy upgrades.
With the EEM, lenders recognize the savings the upgrades will bring. Borrowers may use these potential savings like extra cash, and add the cost of upgrades into the mortgage, paying them off easily as part of the monthly mortgage payment. Once the upgrades are installed the potential savings turn into real savings. That means the buyer has more borrowing power based up on the same income. The FHA Energy Efficient Mortgage covers upgrades for new and existing homes and is now available in all 50 states.