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The weather in Idaho can be hot and dry in the summer, and cold and snowy in winter. Because of these seasonal variations, many homeowners prioritize having an energy-efficient home.
Homes that are energy-efficient can reduce energy consumption by 20% to 30%. This translates to annual savings of approximately $400 to $600, on average.
Some homeowners end up saving significantly more, especially those who make multiple Idaho green home upgrades rather than just one.
In this guide, we’ll look at how energy-efficient mortgages in Idaho (a.k.a. “green mortgage”) could help you make efficiency upgrades to your home in Idaho.
As the name suggests, an energy-efficient mortgage (EEM) lets you roll the cost of energy‑saving upgrades into your home purchase or refinance loan.
Instead of paying out‑of‑pocket for new windows, insulation, or solar panels, you borrow a little extra up front to make those improvements. Ideally, your lower utility bills will offset the extra amount borrowed.
Essentially, EEM financing allows you to afford a higher‑quality home or make improvements that pay for themselves over time.
We’ve talked about the main benefit to using energy-efficient home loans in the state of Idaho. It allows you to finance energy-saving upgrades to your home, which could save you a lot of money over time.
Here’s a more complete list of EEM benefits for Idaho homeowners:
By financing improvements that reduce utility bills in Idaho homes by slashing heating, cooling, and electricity costs, you’ll see smaller utility bills right away. That savings can offset part of the extra mortgage payment you take on for the upgrades. And over time, they put money back in your wallet.
Mortgage lenders in Idaho will factor in your projected energy savings when they calculate how much you can borrow. If your house will cost $50 less per month to heat and cool, they may count that $50 toward your income—letting you qualify for a slightly larger mortgage.
Beyond the dollars and cents, energy upgrades can also make your home more comfortable and quieter. People with older HVAC systems are often amazed by the efficiency and quietness of modern systems.
These upgrades could also help you sell your home in the future. Buyers will appreciate the lower operating costs, allowing you to command a higher price.
Reducing your home’s energy use means burning less fossil fuel and lowering greenhouse gas emissions. Energy-efficient homes help minimize your carbon footprint, making them a smart investment for environmentally conscious homeowners.
There are many different versions of the energy-efficient mortgage product, because a lot of different lenders offer them.
Here are five of the most popular programs for Idaho homeowners:
The process of using an energy-efficient mortgage in Idaho can vary depending on the type of loan and the borrower’s goals. But it usually looks something like this:
Note: This is a general overview of the main steps involved with eco-friendly home financing in Idaho. Your process may differ slightly or require additional steps.
Let’s move on to discuss the upgrades themselves. The following types of improvements usually qualify for energy-efficient mortgage financing.
If you focus on more than one of these areas, you’ll probably see a greater reduction in energy usage going forward.
To qualify for a Green Mortgage in Idaho, your home must meet specific energy-efficiency standards. This can include features like solar panels, high-efficiency heating and cooling systems, or enhanced insulation. Many lenders require a home energy audit to assess the property’s efficiency and determine eligibility.
Idaho also offers first-time homebuyer programs that may include incentives for energy-efficient homes. If you’re considering a green mortgage in Idaho, it’s best to check with local lenders and government programs for available options.
The bottom line: If you’re a home buyer or homeowner in Idaho, and you’re looking for ways to go green and save green, an energy-efficient mortgage program in Idaho might be just what you need.
How does an EEM benefit borrowers?
Borrowers can qualify for larger loan amounts since lenders factor in future energy savings, making it easier to afford a more efficient home.
What types of homes qualify for an EEM?
EEMs can be used for new or existing homes, including ENERGY STAR-certified properties and homes requiring energy-efficient improvements.
Which lenders offer EEMs?
EEMs are available through FHA, VA, and conventional lenders, including Fannie Mae and Freddie Mac.
Do EEMs require a home energy assessment?
Yes, borrowers typically need a home energy audit to verify efficiency improvements and estimate monthly energy savings.
Can EEMs be used for refinancing?
Yes! Homeowners can refinance their mortgage and include energy-efficient upgrades in the loan.
Are EEMs tax-deductible?
In many cases, EEMs are tax-deductible, making them a financially smart option for homeowners looking to reduce energy costs.
If you’re looking to buy in Idaho, we can help. At Sammamish Mortgage, we offer various mortgage options for you to choose from, including energy-efficient mortgages in Idaho. Visit our website to get an instant rate quote or call us today to have your mortgage questions answered!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.