Your Complete Guide to the Energy Efficient Mortgage in Wichita, KS
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What is an Energy Efficient Mortgage (EEM)?
An energy efficient mortgage, also known as a Green Mortgage, is a specialized loan product that allows homebuyers and homeowners to finance energy-saving improvements directly into their home loan. Whether you are purchasing a new home in Wichita, KS, or refinancing your current property, an energy efficient mortgage provides the funds needed to upgrade insulation, install solar panels, or replace outdated HVAC systems.
By rolling these costs into your primary loan, you avoid the high interest rates associated with credit cards or personal loans. The upgrades must be cost-effective, meaning the money saved on utility bills will be greater than the cost of the improvements. At The Mortgage Squad, we are experts at providing second opinions on energy-efficient mortgages to ensure you get the best possible terms for your eco-friendly upgrades.
Types of Energy Efficient Mortgages: FHA, VA, and Conventional
There are three main types of energy efficient mortgages available to borrowers in Kansas. First, the FHA EEM allows borrowers to add energy improvements to their FHA purchase loan or refinance. The amount you can borrow is typically based on the energy report recommendations and the appraised value of the home.
Second, the VA EEM is available for eligible veterans and active duty military personnel. This program allows up to $6,000 in energy improvements to be rolled into a VA loan, making it easier to afford a comfortable, green home. Finally, a Conventional EEM can be added to a standard conventional fixed-rate mortgage. Programs like Fannie Mae’s HomeStyle Energy offer flexible options for extensive green upgrades. Each program generally requires a Home Energy Rating System (HERS) report to verify that the upgrades will save you money over time.
| EEM Program | Maximum Upgrade Amount | Appraisal Requirement | Eligible Borrowers |
|---|---|---|---|
| FHA EEM | Lesser of 5% of property value or $8,000 | Standard FHA rules apply | FHA eligible buyers |
| VA EEM | Up to $6,000 (more with special approval) | Based on pre-improvement value | Veterans and active military |
| Conventional EEM | Up to 15% of the as-completed appraised value | Based on post-improvement value | Conventional loan qualifiers |
Why Choose The Mortgage Squad for Your Green Mortgage?
Navigating the requirements of an energy efficient mortgage can feel overwhelming, but you do not have to do it alone. Led by Randy Pitts, The Mortgage Squad is a trusted mortgage lender serving Wichita, KS, and the surrounding areas. We specialize in helping Kansas residents find the perfect loan solutions for their unique needs, from first-time homebuyer programs to complex investment loans.
We are experts at providing second opinions on energy-efficient mortgages, ensuring you secure the most competitive rates and terms available. Making your home more energy efficient not only lowers your utility bills but also increases your overall property value. Reach out to our local experts today to learn how a Green Mortgage can work for your specific financial goals.
Q1: What exactly is an Energy Efficient Mortgage?
An energy efficient mortgage is a type of home loan that allows you to finance the cost of energy-saving improvements into your mortgage balance, rather than paying out of pocket.
Q2: Can I add an EEM to an FHA purchase loan?
Yes, the FHA EEM program allows you to roll the cost of approved energy upgrades directly into your FHA purchase loan or refinance.
Q3: Are there energy efficient mortgages for veterans?
Absolutely. The VA EEM program permits eligible veterans to finance up to $6,000 in energy improvements when buying or refinancing a home.
Q4: What qualifies as an energy efficient upgrade?
Common upgrades include new insulation, high-efficiency HVAC systems, solar panels, and double-pane windows. A Home Energy Rating System report is usually required to verify the savings.
Q5: Do you offer second opinions on loan estimates?
Yes, we are experts at providing second opinions on energy-efficient mortgages to help borrowers in Wichita, KS, confirm they are getting the best possible deal.
