HomeStyle Energy Mortgage

An efficient, healthy home is within reach

Energy-efficiency upgrades to an older or newly purchased home are about more than just lowering utility bills. They’re also about keeping your family healthy. Now, thanks to the HomeStyle® Energy mortgage, you don’t have to choose between a healthy home and your budget.

Why choose HomeStyle Energy?

    • Bundling updates into your HomeStyle Energy Mortgage empowers you to pay for energy efficiency updates over the life of your mortgage.
    • You could pay as little as 3% down at purchase, get competitive interest rates (compared to PACE loans and other financing), and have the security of cancellable mortgage insurance once you reach 20% equity in your home. You can also take advantage of mortgage tax deductions.
    • You set yourself up to have more consistent energy bills—no big surprises each month.
    • When using HomeStyle Energy to purchase a home, you can make the energy efficiency updates you need along with your purchase. 
    • You get to work with the same lenders you’re already working with for your mortgage or refinance. 
    • There’s only one financing application and one payment to keep track of each month because the cost of energy efficiency updates is bundled into a HomeStyle Energy mortgage.
    • It’s available nationwide through most lenders and enables you to bundle existing energy improvement debt from PACE loans, credit cards, and home equity credit lines to further simplify monthly bills. 

What improvements are covered by the HomeStyle Energy mortgage?

Improvements include:

    • Smart thermostats
    • Heating, ventilation, and cooling systems (HVAC)
    • Basic weatherization and insulation
    • Energy-saving windows and doors
    • Water heaters

Learn how energy efficiency helps your family.

Improvements include:

    • Water-saving toilets
    • Low-flow shower heads and faucets

Improvements include:

    • Solar panels
    • Wind power
    • Geothermal power

Improvements include: 

    • Retrofitting foundations
    • Adding retaining walls
    • Removing bushes/trees in fire-prone areas
    • Storm surge barriers
    • Radon remediation devices
    • Storm windows and doors

Buying a home with HomeStyle Energy

When you're buying a home, HomeStyle Energy allows you to use up to 15% of the “as completed” value of the property (that's the appraised value of the home once the upgrades are completed) for new energy improvements. (Learn more about the benefits of an energy-efficient home here.)

For example, an eligible buyer with a home valued at $100,000 after upgrades can receive up to $15,000 (15%) from the mortgage transaction. Improvements above $3,500 may require a Home Energy Reporting System (HERS), Department of Energy (DOE), or comparable report to ensure that the right improvements—the ones that will make a difference for your home—are the ones being made. 

Refinancing a home with HomeStyle Energy

Homeowners who want to make energy-saving improvements or who’ve previously made those types of updates may qualify for a limited cash-out refinance, for up to 15% of the home’s value. This means you would refinance your current home loan into a new mortgage to access the equity in your home. The equity amount would then be used to pay for new energy improvements or to pay off other energy improvement-related debt.

Want to find out more? Ask your lender about HomeStyle Energy today. 

Energy-efficient homes are healthier homes

The same improvements that stop your house from wasting energy also put a halt on drafts, mold, mildew, and allergens that creep in from the outside. They can help your family breathe easy, rest easy, and feel good. Read more about energy efficiency and health.