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Eligible borrowers:
People and businesses
Eligible systems:
Solar thermal, PV (grid-tied, with 10-year payback limit); measures increasing energy efficiency by 30% over code
Loan Amount
No limit
Interest Rates:
Market rates with discounts available on some Energy Star home loans
Collateral:
First mortgage to 120%
For more Info:
(888) STAR-YES
www.epa.gov
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The Environmental Protection Agency (EPA) moves into the 21st century with a blueprint for achieving vital public health and environmental protections for U.S. citizens over the next five years. This includes continuing EPA's mission to protect human health and safeguard the natural environment (air, water, and land) upon which life depends.
Environmental protection contributes to making our communities and ecosystems diverse, sustainable, and economically productive. The Environmental Financing Program seeks to increase environmental investments by creating partnerships with states, local governments, and the private sector to fund environmental programs and projects.
The Energy Star Financing Program works with lenders to provide special financing for buyers of Energy Star rated homes. The Energy Star Homes Program encourages builders to construct homes that are 30% more energy efficient than homes built to the model energy code. Some Energy Star rated builders are including solar thermal and photovoltaic systems.
Currently, three national lenders and several regional lenders are offering Energy Star mortgages. These involve special underwriting guidelines that allow home buyers to purchase homes with mortgages 10% to 24% higher than they would have qualified if the home were not Energy Star rated.
In addition, several Energy Star lenders offer cash discounts at closing that cut closing costs almost in half. All offer competitive interest rates. Even without these special mortgages, an Energy Star rated home provides energy savings that benefit home buyers financially. The monthly energy savings on an Energy Star rated home translate into to point off the interest rate on a 30-year mortgage. EPA/DOE studies indicate that the value of a home increases from $11 to $25 for every $1 reduction in annual utility bills.
Information Provided by the U.S. Department of Energy
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