Energy Mortgages Part II

Q: How much money could be available to increase a loan amount for Efficient Improvements?

A: Amounts vary with the program. The EEM and EIM is recognized and provided for by the F.H.A. with both Fannie Mae and Freddie Mac; it is also available for VA loans.

Q: How is it determined which improvements qualify for this type of loan and how much is allowed for various items.

A: The house under consideration is treated as one system. If it is insulated with very high R-Value insulation, it requires a smaller furnace and air conditioner. The differences in each house can be accounted for through the application of a certified Energy Audit and software. The audit determines the actual amount of various energy efficient features, such as insulation, solar orientation, HVAC equipment, and other items. There are diagnostic pressure tests run that determine the leakage in the building shell (to measure the possibility of cold drafts in the winter) and the supply and return ducts. These are entered into the software for a rating.

The features are then adjusted to account for improvements in the various features, along with estimated costs for each. The computer results show the cost of that improvement and the resulting savings. The improvements are then ranked according to payback time.

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