ENERGY STAR® Mortgage - Quick Facts

The ENERGY STAR mortgage can be used to finance energy efficiency improvements for an existing home, or for the purchase of a new, ENERGY STAR-qualified home. Additional program requirements:

• The weatherization upgrades to an existing home must lead to a minimum 20% savings over the home’s previous energy use, obtained through a Home Performance with ENERGY STAR assessment and improvement process;


• Lenders must provide a borrower benefit above and beyond the expected home energy cost savings, such as a reduction in the interest rate, assistance with closing costs, or other benefits;


• Lenders must use state-approved auditors, which allow the use of verified, accurate audit tools that may be cheaper than existing tools. Utilizing state-approved auditors also greatly expands the number of companies that can provide accurate audits in support of increasing energy efficiency, potentially leading to an increase in jobs;


• A wide range of mortgage products qualify as an ENERGY STAR® Mortgage, including refinance mortgages and mortgages to purchase homes. Product types include regular forward mortgages and reverse mortgages and first or second mortgages. The home improvements can be in the mortgage or outside it (for example, they can be financed through a weatherization grant or a state-subsidized unsecured loan, among other options) as long as they both close at the same time.