Energy Efficient Mortgage (EEM) and Home Energy Rating System (HERS) Reports

How Energy Efficient Is The House That YOU Are Buying Or Refinancing?

Probably not nearly as efficient as it could be. The fact is that New England has some of the oldest and least energy efficient housing stock in the country. Even newer “energy efficient” homes can have costly energy performance flaws. The bottom line is, no matter what claims others may make about the energy performance of the home you are buying, YOU are the one who will be paying the bills once you move in. An Energy Efficient Mortgage (EEM) Can Help You Take Control Of The Energy Performance Of Your Home.

What Is An Energy Efficient Mortgage?

Very simply, an Energy Efficient Mortgage (EEM) is a mortgage where the cost of installing “cost effective” energy improvements can be included in the total amount being financed (or refinanced) in any HUD/FHA, VA, or Fannie Mae mortgage. Homebuyers can generally finance from $3,000 to $8,000 worth of energy improvements directly into their mortgage so long as a Home Energy Rating System (HERS) provider documents that the expected average monthly energy savings will be greater than the small amount added to the monthly mortgage payment to cover the $3,000 to $8,000 EEM. In New Hampshire, almost every home can gain significant energy savings from just a few hundred to a few thousand dollars worth of “targeted” energy improvements.

See - "Background Information on the Home Energy Rating System (HERS) and the Energy Efficient Mortgage (EEM) Programs.

How Can YOU Benefit From An Energy Efficient Mortgage (EEM)?

An EEM Can Help You In Several Ways:

They clearly identify what the most cost effective energy improvements are that can be made to your home. They allow you to finance the cost of installing those energy improvements directly into your mortgage package with all of the interest rate and tax savings that you probably Will Not get by trying to finance these improvements later. (such as when cold drafts start blowing through the home or heating oil approaches $2.00 per gallon.) They can be used for both existing homes and for new home construction projects. If you need it - Most EEM’s will allow you to stretch the standard amount that you can borrow (or refinance) to include those energy improvements.

HORIZON RESIDENTIAL ENERGY SERVICES OF NH is a nationally accredited Home Energy Rating System (HERS) Provider (see below) in place to link You and Your current Mortgage Lender with these EEM programs.

HORIZON RESIDENTIAL ENERGY SERVICES OF NH can evaluate the home you are buying or refinancing to determine which energy improvements will save you the most money, and then provide the documentation your lender needs to process the EEM. The small amount added to your monthly mortgage to cover the cost of those energy improvements are then more than offset by your monthly energy savings, so You Save Money Every Month.

Taking A Few Extra Steps Now Can Save You A Lot Of Money Later!

The Typical Steps in The EEM Process:

1. Homebuyer lets the Lender know they want their HUD/FHA, VA, Fannie Mae, or Freddie Mac mortgage to be an Energy Efficient Mortgage (EEM). Calls Horizon-RES to schedule a Home Energy Rating (HERS) audit to be performed on the home.

2. The HERS audit is performed (about 2 hrs.), Horizon-RES models the home in the HERS Software, and a list of allowable EEM options are discussed with the Homebuyer.

3. The Homebuyer determines which energy improvement measures best meets their needs and written quotes are gathered from one or more local contractors.

4. The homeowner determines which contractor they want to do the work. Horizon-RES sends the Lender a completed EEM package containing all of the required EEM documents.

5. The Mortgage Closing takes place. The funds to cover the energy improvements are put into an escrow account, and the homebuyers move into their new home.

6. The contractor installs the energy improvements and Horizon-RES does a final inspection.

7. The contractor gets paid from the escrow. That account is closed, and the Homeowners start saving money.

Home Energy Rating System (HERS) Based - Energy Efficient Mortgage (EEM) Report:

A Home Energy Rating System (HERS) is a computerized in-depth “house as a system” residential energy performance evaluation that is performed as per the technical guidelines adopted by the National Association of State Energy Officials (NASEO) and recognized by the national mortgage industry as the uniform method to be used for Energy Efficient Mortgage (EEM) programs.

The HERS Report produces a detailed energy profile of the home with its current energy features, and then produces a list of cost effective energy improvements with their expected monthly energy cost savings. This provides the Homebuyer not just with valuable information about the best measures that can be included in the EEM, but also what are the best measures that can be installed in the future.

See - "Background Information on the Home Energy Rating System (HERS) and the Energy Efficient Mortgage (EEM) Programs".

Call for pricing for HERS based EEM Services for new Home Mortgages and Home Refinance Mortgages for single family and Multi-Unit projects.

Payment is due at the time of the Site Visit.