With electricity prices skyrocketing and day-to-day living costs becoming more expensive, making your home energy efficient is now more critical than ever.
Make your home energy efficient. An energy-efficient home powered by renewable energy will reduce your expenditure. Money saved is money that could be transferred to your mortgage principal. Or better still, depending on your circumstances, it could be spent on holidays, children’s education, or easing the financial burden in other aspects of your life.
Across the US, millions of veterans may be eligible for an Energy Efficient Mortgage (EEM) that will markedly decrease their energy costs. The Department of Veterans Affairs offers this Veteran Home Loan as part of its Home Loan Guaranty module.
Veterans can take advantage of a VA Home Loan that seeks to assist them in reducing their energy costs. This is a compelling proposition for homeowners due to the high energy cost and expected savings each month. Over the lifetime of a person’s home ownership, switching to green energy can save thousands of dollars.
A VA Home Loan allows qualified buyers the opportunity to incorporate into their purchase or refinancing loan the cost of applicable energy improvements. Correlates to ongoing savings that reduce household financial hardship. With an approved loan, active and retired military service members can choose to purchase and implement a range of energy-efficient devices. These may include ventilation systems, heating and cooling devices, and lighting products.
Active Military members can use their Basic Allowance for Housing (known as BAH) as a means of applying for an EEM. This allowance is paid monthly to eligible service members and their families. BAH rates are set annually and are predetermined by factors such as rank, dependent status, years of service, and location. Before applying for an EEM, active military members should enquire whether they have enough BAH for home loan eligibility in their area.
All applicants for a Veteran Home Loan will still be assessed according to Uniformed Mortgage Lending standards. Factors including income, employment status (min 2 years active duty service, with two years remaining on active status), and credit history will all need to be reviewed.
Spending additional money on energy resources can seem daunting at first, but this should be viewed as a long-term investment. An energy-efficient home will lower electricity costs and reduce the costs associated with heating, cooling, and other expenses. You can expect these savings within the first 12 months of making changes.
These are some of the EEU (energy efficiency upgrades) upgrades you can roll into your mortgage or your home refinance to receive the promotions:
windows and doors
solar heating and cooling
heat pumps
thermostats
insulation upgrades for ceilings, walls, and attics
water heater
Eligible veterans and their spouses can use the EEM loan for projects of all sizes. The only requirement is that the renovations and modifications reduce your energy expenditure. The only requirement is that you’re willing to save money on your energy costs!
Energy-efficient mortgages are applicable for a range of loan types. Under the Veterans Affairs program, borrowers can generally add up to $6,000 – $20,0000 in their loan improvements if the home meets VA Appraisal and lending guidelines.
EEU upgrades:
installing a solar water heater
installing and solar heating and cooling system (HVAC)
installing storm windows and doors, including thermal windows and doors
performing caulking and weather stripping of a home
adding water heater insulation to a home
EEUs represent a vast array of energy-efficient options at your disposal.
THE TIME TO BUY A HOME IS NOW!
After your energy audit has been conducted, you will be provided an approximate cost of your energy-efficiency improvement. The EEM loan will generally be held in an account and released to you after the improvements have been updated or installed.
In addition to reducing energy costs, a clean home can significantly enhance your resale value. It has been proven repeatedly that prospective home buyers are likely to pay higher amounts for more energy-efficient homes.
And it’s not just lowering costs that is leading more Americans to search for energy-efficient homes. Living in a home powered by clean energy means that you’ll be decreasing your carbon footprint. With climate change a factor that will likely affect future generations, it’s comforting to know that you can do your part to implement positive environmental change.
Veterans Affairs Energy Efficient Mortgages represent a perfect option for active and retired service persons to lower their energy expenditure and, in doing so, provide a cleaner, more reliable future for their children.
If you’re a veteran, you should not waste time applying for an EEM today.