Building energy efficient homes and improving energy efficiency
in our homes can increase their value.

Over the past few years, there has been a ground swell of Green
building interest by home buyers and builders. In response to
the growing demand to conserve energy in our homes, there are
several new mortgage programs that allow home buyers to finance
the cost of energy improvements into their mortgage, to increase
their loan-to-value, or improve their qualifying ratios. Some of
the more common improvements that are used to make homes more
energy efficient include the addition of new windows, high
efficiency heating/cooling systems, and improved insulation. All
of these contribute to reduced energy use, and also to making
homes quieter, more comfortable, and more desirable.

Mortgage Programs

These programs allow buyers to purchase a more expensive home
that has a lower cost of ownership to offset the larger mortgage
payment. There are 2 types of financing options available
that cover a variety of scenarios for energy efficient homes.

• Energy Efficient Mortgages (EEM’s) allow borrowers to qualify
for a larger loan, using expanded income ratios, sometimes with
the same down payment.

• Energy Improvement Mortgages (EIM’s) allow borrowers to
include in the mortgage the cost of making an existing home more
energy efficient, when they refinance or purchase the home.

These products are available through your local mortgage
brokers and banks using FNMA, FHLMC, FHA, and VA guidelines.

EPACT 2005-2008 provides $2000 Builder Tax Credit

The Energy Policy Act of 2005 established a federal tax credit
for builders that apply to each home that exceeds the energy
performance threshold outlined in the 2004 International Energy
Conservation Code (IECC2004). Eligible homes must be at least
50% more efficient than homes built to the IECC2004. It is
fairly easy for builders to achieve this threshold by building
tighter homes, installing high-performance insulation, and
sealing duct work. The best way for a builder to find out how to
meet EPACT is to consult with a certified RESNET (Residential
Energy Services Network) Home Energy Rater. In order for a
builder to receive a $2000 tax credit, the home must be rated by
a RESNET certified rater using IRS approved software.

What makes a home energy efficient?

The cost of heating and cooling a home represents the largest
cost of ownership, outside of the home mortgage expense.
Everyone wants a home that is comfortable to live in, and yet
the costs associated with reaching a comfortable level can be
very high. Energy Efficiency can be defined as the use of
products or systems that use less energy to do the same or
better job as conventional products. In home construction and
performance, there are many areas where energy efficiency can be
achieved, to allow you to meet those desired comfort levels.

The EPA’s ENERGY STAR® program has developed a process for
evaluating products used in a home, such as appliances, windows,
lighting and other products that meet or exceed certain
efficiency standards or recommendations. When choosing products
for a home, ensure the products meet Energy Star ratings. This
can include furnace, air conditioning and water heater
performance, replacement of appliances in the home, and
installation of energy efficient lighting such as Compact
Florescent Lamps (CFL’s).

Other construction design aspects can have a significant impact
on the energy performance of a home. Insulation levels should be
adequate for the environment, and more importantly, proper
installation of the insulation is critical in ensuring it is
performing to the expected levels. Air infiltration and leakage
can be another area where hidden openings in the building shell
can cause heat and cooling losses to occur, reducing the
efficiency of the home’s performance.

In addition to performance of individual components in a home,
the EPA’s Energy Star Program also works with builders to
qualify and certify home performance, to ensure that maximum
performance is achieved. ENERGY STAR® qualified homes are
designed to be at least 15 percent more energy efficient than
homes built to the 2004 International Residential Code (IRC).
ENERGY STAR® qualified homes offer homebuyers all the features
they want in a new home, plus energy-efficient improvements that
deliver better performance, greater comfort, and lower utility
bills.

ENERGY STAR® homes have had their energy efficiency
independently verified by an inspector known as a Home Energy
rater. A HERS Rater will inspect and test the home during
construction, and verify that the home meets EPA’s strict
guidelines for energy efficiency.

RESNET; Establishes rules for the energy rating industry

In 1995 RESNET was founded to develop a national market for
home energy ratings and energy efficient mortgages. One main
goal of RESNET was the development of standards for quality of
rating services. The standards set the national procedures for
home energy ratings, and include testing and accreditation for
raters and providers, development of verification processes for
homes meeting ENERGY STAR® and energy efficient building
standards, as well as meeting local Energy Code compliance.

A certified HERS Rater follows a prescribed standard for how a
home is measured, verified and rated, and must comply with
national standards to continue to perform certified ratings.

What is an energy audit or HERS Rating

A Home Energy Rating, performed by a Certified HERS Rater,
consists of a full visual analysis of components and aspects of
the home, along with energy performance testing of air
infiltration with a tool called a blower door. Evaluation of
home energy bills can also be included. A blower door slightly
de-pressurizes the home and determines the amount of air leakage
present. The home is compared to a hypothetical reference home
which is based on the IECC 2004, and the home is then provided
with a rating. The rating can be a numerical HERS rating or a
‘star’ rating based upon ENERGY STAR® requirements.

Along with the actual performance rating, the homeowner will be
provided with details on areas of the home that need to be
improved, in order to further save energy costs and improve the
comfort and efficiency of the home.

Article Source: http://www.energyefficienthomearticles.com

Authors: Bruce Czech, Colorado Professional Inspections George Scott, Scott Home Inspection For more information, visit Green Energy Savers

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