The VA home loan program offers numerous benefits to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. One question frequently arises—can you use a VA home loan for energy-efficient home improvements? The answer is not only possible but often encouraged.
Energy-efficient home improvements have become increasingly important as homeowners aim to reduce utility bills and increase their property's value. The VA loan program allows for the financing of certain energy-efficient upgrades through a specific feature known as the Energy Efficient Mortgage (EEM).
The EEM program enables VA loan borrowers to finance energy-efficient upgrades as part of their home purchase or refinance. This can include a variety of improvements such as:
One of the key benefits of using the VA EEM is that it allows qualifying borrowers to increase their loan amount to cover the cost of the necessary improvements. This can lead to lower energy bills, contributing to long-term savings that can offset the upfront costs of these enhancements.
To take advantage of the VA EEM, there are a few steps homeowners should follow:
It’s essential to note that while the VA loan can cover a range of energy-efficient upgrades, certain conditions must be met. The improvements should have a clear potential to save energy or improve the property's overall energy efficiency. In addition, this must align with the guidelines set forth by the VA and the lender.
One notable aspect of opting for energy-efficient home improvements is the potential for incremental increases in the home's market value. Prospective buyers are increasingly looking for homes with lower operational costs, and energy-efficient features can be significant selling points. This can be particularly advantageous if you decide to sell the home in the future.
In conclusion, utilizing a VA home loan for energy-efficient home improvements through the Energy Efficient Mortgage program is an excellent opportunity for eligible military borrowers. Not only can it lead to enhanced comfort and lower energy costs, but it can also increase your home’s value. Consult with a qualified VA lender to explore your options today, and take a step towards a more energy-efficient future.
