Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
FHA energy efficient mortgages are special loans that are backed by the Federal Housing Administration to encourage the construction and purchase of homes that utilize less energy in day-to-day functioning.
The purpose of energy efficient mortgages
FHA energy efficient mortgages are designed to do several things. These include:
- Enable the purchase of energy efficient homes -- FHA energy efficient mortgages are available for those who are in the market to buy energy efficient homes or make such improvements to them at the time of purchase.
- Refinance homes to make improvements -- FHA energy efficient mortgages can also be used to refinance existing home loans so energy efficient improvements can be made to a property.
Who funds FHA energy efficient mortgages?
Qualifications for FHA energy efficient mortgages
There are a number of qualifications that must come into play for people to be eligible for FHA energy efficient mortgages. They include:
- Regular qualifications -- Buyers must qualify for standard FHA-backed loans to obtain this type of mortgage.
- Cost effectiveness of the improvements -- FHA energy efficient mortgages are designed to make minor to moderate improvements. The cost of improvements cannot exceed 5 percent of the property’s value.
- Size of the property -- FHA energy efficient mortgages are available for properties that are one to four units in size.
- Low Down Payment Loan Qualification
- FHA Loans for a First-Time Home Buyer
- Should You Refinance? Make Sure the Timing is Right
- Second Mortgages: Advantages and Disadvantages
- Alternatives to Getting a 2nd Mortgage
- 3 Common Short Sale Mistakes
- 3 Warning Signs of Loan Modification Scams
- What Lenders Don't Reveal About Home Equity Loans
- How to Get Approved for an FHA Loan despite Bad Credit