CCM EasyGreen: Energy-Efficient Mortgage
Sometimes, it’s easy being green. And easy to save some green. This is one of those times. We’re making it easier by adding financing for energy-efficient improvements to your home loan, and you can use this whether you’re purchasing a home or refinancing your current mortgage.
What is CCM EasyGreen?
CCM EasyGreen is savings times two! It provides you with a lower mortgage interest rate for the life of your loan when you make eco-friendly appliance purchases and home renovations that will save you money on your utility bills.
EasyGreen is a conventional mortgage with a green twist. Borrowers can finance the cost of energy-efficient appliances and home improvements into the mortgage for their primary residence. It’s designed to save money in two ways: First by lowering your energy consumption through the use of energy-efficient appliances and improvements; second by giving you a lower interest rate on your home loan.
It’s available to people who meet income limits specific to the area where they are buying or refinancing their home, so it’s also creating more opportunities for homeownership while promoting energy conservation.
What is an energy-efficient mortgage (EEM)?
An energy-efficient mortgage (EEM) allows homebuyers or homeowners to finance energy-efficient home improvements as part of their mortgage. These improvements generally include anything from upgrading insulation and windows to installing solar panels or energy-efficient appliances, but the exact items covered vary by loan program.
The goal is to make the home more energy efficient, ultimately reducing energy consumption and lowering utility bills to make homeownership more affordable. The energy-efficient improvements can be financed as part of a purchase mortgage or refinance of an existing home loan.
Who is CCM EasyGreen for?
If you want to save money on your utility bills, have a lower loan interest rate, and finance your energy-efficient appliances and home improvements with your mortgage, EasyGreen could be right for you. There’s also a specific list of items and improvements that can be financed, and they must meet cost-effectiveness standards:
- Air cleaners
- Clothes dryers
- Clothes washers
- Dehumidifiers
- Dishwashers
- Electric cooking products
- Freezers
- Refrigerators
- Smart thermostats
- Ceiling fans
- Light fixtures
- Attic insulation
- Basement/crawlspace insulation
- Ventilation fans
- Water heaters
CCM EasyGreen loan requirements
The property must be your primary residence. You’ll need to meet the requirements for a conventional Fannie Mae or Freddie Mac mortgage, but they have loan programs available with down payments as low as 3%, as well as flexible credit requirements.
Most importantly, there’s an income limit of 100% or less of the Area Median Income (AMI) for the property location. Your loan officer will determine your eligibility for EasyGreen.
Conventional green renovation products
Both Fannie Mae and Freddie Mac offer conventional renovation loans. The types of energy-efficient improvements eligible for financing may differ between the two programs. In addition, Fannie Mae’s HomeStyle® Energy program and Freddie Mac’s GreenCHOICE Mortgage® program may have slightly different eligibility criteria. Minimum credit score requirements or maximum loan-to-value ratios may differ between programs.
Fannie Mae HomeStyle® Energy Mortgage
The Fannie Mae HomeStyle® Energy mortgage is a unique financing option designed to promote energy-efficient improvements in homes. This program offers flexibility for eligible improvements. It includes upgrades such as solar panels, insulation, HVAC systems, and more.
Freddie Mac GreenCHOICE Mortgage®
With a Freddie Mac GreenCHOICE Mortgage®, homeowners can access funds to invest in a wide range of green improvements. These include solar panels, energy-efficient appliances, insulation, and more.
Energy-efficient mortgage: FAQs
Here are answers to a few questions you may have, but as with any mortgage, your loan officer is your best resource.
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Green mortgage is another name for energy-efficient mortgage (EEM). It’s a home loan that allows homebuyers or homeowners to finance energy saving improvements as part of their home purchase or refinance. The goals of a green mortgage are to be more eco-friendly and save money, so you can reduce your energy consumption, help the planet, and improve your bottom line.
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EasyGreen can benefit borrowers who:
- Want to save money on their energy bills
- Want to use home financing (with a lower interest rate than credit cards or personal loans) to buy energy-efficient appliances and make energy-efficient home improvements
- Will get a lower interest rate on their mortgages by using an EasyGreen mortgage
- Want an eco-friendlier home
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The income limit for EasyGreen is set at 100% or less of the Area Median Income (AMI) for the property location. To find out if an EasyGreen loan will work for you, your loan officer will need to know your income and the address of the property you’re buying or refinancing. This is standard information for loan applications.
