The energy efficient mortgage (EEM) works on the premise that increased savings from energy efficient appliances and building materials and methods will result in increased financial savings for consumers. In turn, these savings can be used for increased payments on mortgages. Home buyers who choose an energy efficient home can afford to spend more on mortgage payments because they will spend less on energy costs. Energy efficient mortgages can be obtained for home purchases and existing homes that need energy improvements.

After the consumer has been pre-qualified for the mortgage, a home energy rating systems (HERS) inspection is needed to determine what upgrades are needed for increased energy efficiency. The consumer can then decide which of these upgrades to install. The EEM will allow consumers to finance 100% of the energy efficient upgrades.

For more information refer to the following links:
Energy Efficient Mortgages
What is an Energy Efficient Mortgage?
Qualified New Homes