More Economic Benefits for Energy Efficient Concrete Homes

Many home owners are selecting a variety of concrete wall systems for their new homes, due largely to their superior energy efficiency. However, most may not realize that there are additional financial benefits available beyond saving money on their utility bills and home owners insurance.

A number of mortgage lenders are now offering Energy Efficient Mortgages (EEMs) to clients who are purchasing a home or retrofitting an existing home to meet certain energy efficiency guidelines. An EEM takes the expected lower energy bills into account when determining the available loan amount and debt-to-income ratio. In most cases the home owner can borrow a greater amount of money with an EEM than with a traditional construction loan, and will even receive an equity credit of up to 5% of the homes initial appraised value. This additional value is a reward to the home owner designed to offset the added cost associated with building a more efficient home.

Energy Efficient Mortgages are offered by several mortgage lenders through Fannie Mae, the Federal Housing Administration (FHA) and the Veterans Administration (VA). Once a home owner has been pre-qualified for a mortgage, the next step is to perform a Home Energy Rating System (HERS) audit on the home. The report generated by this audit will recommend energy efficient upgrades for the home, the estimated savings in monthly operating costs and the payback period of the energy upgrades. The process from start to finish doesn’t take any longer than traditional financing, but adds a significant amount to the home’s appraised value.

Although several mortgage lenders now offer EEMs, it can often be a frustrating experience for a homeowner to find someone within the company that knows the particulars about the program and how to apply for these types of mortgages. One mortgage lender that is educated about concrete homes and that has taken a proactive stance in heavily promoting EEMs is Indigo Financial Group, based in Lansing, Mich. Indigo currently offers mortgages in 37 states and is a registered partner of the government-backed Energy Star program, which serves to educate the public and the home building community about energy efficient technologies. In addition to doing EEMs for existing home retrofits, the company also processes EEMs on construction loans that are geared towards energy-efficient builders. [ return to top ]