Sometimes, solar financing may be the only option for people who are looking to convert their homes to solar power. An energy-efficient mortgage (EEM) for a new home, or an energy improvement mortgage (EIM) for an existing home, may provide solutions for homeowners who are looking to go off the grid. Homeowners who obtain EEMs or EIMs will save not only from the tax deduction for mortgage interest, but also from the tax credit for installing a photovoltaic system.

EEMs and EIMs have unique characteristics, when compared to other mortgage products. EEMs increase a home buyer\’s income by an amount equal to the home\’s estimated energy savings. An EIM allows a home buyer to roll the cost of energy improvements into the existing mortgage, without having to increase the down payment. In a sense, with an EIM, the money saved on utility bills is used to finance the cost of energy improvements.

Conventional energy mortgages must belong to Freddie Mac or Fannie Mae. In the case of Fannie Mae, the home\’s appraised value will include the added value provided by the energy improvements. Home buyers may find information about Freddie Mac or Fannie Mae lenders by checking either company\’s website, or by calling Fannie Mae\’s toll-free number.

Federal Housing Administration (FHA) mortgages may be used for energy-efficiency upgrades. Qualified upgrades may increase a mortgage\’s value by the lesser of five percent of either the home\’s property value, 115 percent of the median price of a local home, or 150 percent of the Freddie Mac limit. The down payment will not increase, and FHA loan limits will not get in the way of the cost of the improvements.

The Veterans Administration (VA) also provides funds for energy-efficiency upgrades. VA loans are available to qualified military veterans, personnel, and reservists. The VA cap for energy improvement costs is between $3,000 and $6,000, and people eligible for VA loans must let their lender know about their eligibility, at the beginning of the application process.

All EEM homes must have a qualified energy audit. Home buyers usually pay for the audit, which may cost up to several hundred dollars. Using a rating system, scaled from one to 100, the auditor rates the energy-efficiency of the home based on insulation, heating and cooling systems, and appliances, among other factors. For the most accurate energy rating, home buyers should ensure that the auditor conducts a blower test, and uses a thermographic scanning tool.

States may also provide funds for installing photovoltaic systems. Interest rates and eligibility requirements will vary by state, so home buyers should contact the appropriate state agency, for more information. However, because the mortgage interest for an EEM is tax-deductible, home buyers may save money over the long term, with an EEM.

Homeowners will find few energy efficiency measures that are more effective than installing solar panels. Solar installations are eligible for a federal income tax credit of up to $1,500, and may also be eligible for state tax credits. With help from federal or state-approved lenders for solar financing, many more households may enjoy the cost savings, and the lowered carbon footprint, provided by a solar-powered home.

Reduce your carbon foortprint Now! solar panels is key to repairing our damaged O-Zone layer. Get a solar panel installation now!

Reduce your carbon foortprint Now! solar panels is key to repairing our damaged O-Zone layer. Get a solar panel installation now!
http://www.highlandsolar.ca

Author Bio: Reduce your carbon foortprint Now! solar panels is key to repairing our damaged O-Zone layer. Get a solar panel installation now!

Category: Business
Keywords: environment, advice, science, weather, energy, product reviews, society, finance, home accessories,