Financial Tools: EEMs and Related Services
A variety of financial tools are available to make efficiency and solar more accessible. Viridiant staff are here to help you identify your best solution, provide the technical resources needed, and offer referrals to lenders and contractors.
Energy Efficient Mortgage (EEM) or Energy Improvement Mortgage (EIM)
Here’s an example: you find an older home in the Richmond metro area you’d like to purchase. We visit the home and note that there’s a new heat pump, but the duct system needs a lot of sealing and insulating and the attic and basement would benefit from some insulation improvements. Our sophisticated “energy modeling” calculates that these improvements should reduce heating/cooling costs by an average $45 per month. Bids for the work come in at $8,000, which would add about $39/month to your mortgage payment. Because this shows a net monthly savings, it would qualify for an EEM – and your borrowing power would be increased in order to have the improvements completed before move-in.
You also can use an EEM for solar installations and for newly constructed homes. Contact us early in your home-buying/building process so that we can offer the most cost-effective solutions. If your upgraded home achieves a certain energy performance threshold, you may be able to increase your debt to income qualifying ration by up to two percentage points.