What is an energy efficient mortgage?

An energy efficient mortgage allows the buyer to get an "income stretch," i.e. the lender can increase the debt-to-income ratio. With an energy efficient mortgage, the home buyer is able to buy "more house," while having lower payments because the energy cost savings are greater than the increases in the mortgage payment. Energy efficient mortgages are sponsored by the Federal Housing Administration, the Veterans Administration, Fannie Mae and Freddie Mac.

An energy improvement mortgage is a type of energy efficient mortgage that finances cost-effective improvements in an existing home. The total expended is rolled into the mortgage loan.

How Can I Get An Energy Efficient Mortgage?