Energy-efficient home features are becoming increasingly important to today’s homeowners, so Fannie Mae has rolled out a new loan program called the HomeStyle Energy mortgage loan. This new loan allows homeowners to save on long-term energy costs by financing upgrades to home energy and water systems, including:
- Replacing windows and doors
- Improving insulation
- Installing water-efficient toilets and showers
- Sealing cracks, and weather stripping around doors and windows
- Replacing or resealing air ducts
- Replacing HVAC and/or hot water heaters
And, not only is this loan available homeowners wanting to make green improvements, but borrowers who have already made energy-efficiency upgrades through a higher-interest option can refinance that debt into a lower interest HomeStyle Energy mortgage. While it is best to check the ins and outs with your mortgage broker or bank, some say this financing option can be more affordable than a home equity line of credit or financing through an HVAC vendor.