Energy-efficient mortgages available to home buyers

An energy-efficient mortgage is available to those who qualify for a mortgage, and it allows energy savings dollars to be used as income on the purchase of a new Energy Star-approved home. This helps qualify the borrower for a higher-dollar home, according to Roman Peeper, a loan officer at Wausau Mortgage Corp., which is a member of Nevada Energy Star Partners.

"An energy-efficient mortgage is a great option for those purchasing an Energy Star-approved home because it allows the buyer to use the energy savings upfront to buy more home for their money," Peeper said.

Resale buyers can qualify for an energy-improvement mortgage, which allows for energy-saving upgrades to be financed into the mortgage and improvements to be made to the property after close of escrow.

"An energy-improvement mortgage is truly a win-win product," Peeper said. "Studies show that for every $1 you save on energy costs, your home increases in value by $20. Most appraisers would agree that energy efficiency might increase a home's value by up to 5 percent."

To receive an energy-efficient or energy-improvement mortgage, a certified HERS rating must be determined by an accredited home energy rater. The process costs $350 to $400, and is tax deductible.

Peeper added that programs are available for homeowners to refinance their existing home, and they can upgrade costs into the mortgage with a lower interest rate and lower monthly payments, in some cases.

Also, if the mortgage customer changes his mind about making the upgrades, or the work is not completed within the allotted time, the amount not used directly for energy improvement is sent to the lender to reduce the principal balance of the mortgage.

"Many people are surprised that they are able to qualify for a higher priced home because of the upfront benefits," Peeper said. "And homeowners who refinance are able to build added value into their home without a big financial impact."

Wausau Mortgage is part of a coalition of local developers, energy inspection/certifica- tion companies, mortgage lenders and other nonbuilder partners that has teamed together to create Nevada Energy Star Partners.

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