Home > Certified New Homes > Mortgage Lending Programs > What is an ENERGY STAR mortgage?

The ENERGY STAR Mortgage program offers consumers lower borrowing costs for financing the purchase of an ENERGY STAR certified home or for financing energy efficiency improvements to an existing home being made under a Home Performance with ENERGY STAR program or a Weatherization Assistance Program Exit ENERGY STAR and that lead to at least a 20 percent reduction in home energy use. ENERGY STAR mortgages are similar to traditional Energy Efficient Mortgages (EEMs) in that they include the cost of energy efficiency investments in the loans themselves so that borrowers can pay for those investments over the life of their loans, as well as possibly deduct the interest from their federal and state income taxes.

Key Benefits

  • Reduce your monthly utility bills as well as your home's carbon footprint.
  • Afford new features that will work better and last longer for your home.
  • Make a long-term investment that earns you savings now.
  • For lenders, utilize the ENERGY STAR brand to expand your business.

One of the key benefits of an ENERGY STAR mortgage is that a borrower can finance energy-saving improvements to their homes without paying more than they would for a typical mortgage. Participating lenders offer borrowers an additional financial benefit above and beyond the value of the home energy savings, such as discounted mortgage rates, reduced loan fees, assistance with closing costs, or another benefit that reduces the cost of the mortgage compared with financing that would otherwise be available to the borrower. Learn about the benefits for lenders who become ENERGY STAR partners and participate in the ENERGY STAR Mortgage program.

This innovative mortgage program offers borrowers an opportunity to lower their energy consumption while making significant, affordable improvements to their homes. These improvements will also lead to a reduction in the overall carbon emissions associated with the energy used in homes. The program is designed to demonstrate that financing can be a useful tool for enhancing the success of investing in energy-efficient homes as well as to demonstrate the importance of utilizing a network of certified energy auditors and contractors in ensuring that cost-effective solutions to energy efficiency problems are implemented correctly and that savings are realized.