Energy Star Financing and Mortgages

March 22, 2006


An ENERGY STAR Mortgage combines the features of conventional or FHA energy-efficient mortgages with at least one additional feature designed to encourage borrowers to purchase ENERGY STAR qualified new homes. Common additional features include closing cost discounts, payments for home energy ratings, interest rate discounts, and fee waivers. "Energy Efficient Mortgages" (or EEMs) make it easier for borrowers to qualify for loans to purchase homes with specific energy-efficiency improvements. Lenders can offer conventional EEMs, FHA-insured EEMs (or VA EEMs), ENERGY STAR Mortgages, or loans that combine the features of these different mortgages. Conventional EEMs are offered by some lenders who sell their loans to Fannie Mae and Freddie Mac. These EEMs increase the purchasing power of the borrower by allowing the lender to increase the maximum Principal, Interest, Taxes and Insurance (PITI) amount by a dollar amount equal to the estimated energy savings. Loan officers are required to submit a HERS report or an Energy Addendum (Form 1004A or Form 70A) to verify the expected energy savings. For more information on how a home qualifies for the ENERGY STAR label and for a list of lenders offering ENERGY STAR mortgages, visit

Program Overview

Implementing Sector: Federal
Category: Financial Incentive
State: Federal
Incentive Type: Loan Program
Web Site:
Administrator: U.S. Environmental Protection Agency
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps


Name: Public Information - Energy Star
Address: 1200 Pennsylvania Avenue NW
Washington DC 20460
Phone: (888) 782-7937

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.