HomeStyle Energy Mortgage
Help your clients get a comfortable, efficient, and resilient home within their budget.
Fannie Mae's HomeStyle Energy mortgage helps keep homeownership affordable and sustainable. Buyers are now able to improve the efficiency and resiliency of a home they're looking to purchase—through updating energy and water systems, installing new doors and windows, and making other improvements.
HomeStyle Energy can be used for:
- Installing new efficient water systems and alternative energy sources (such as solar or geothermal)
- Replacing windows and doors for better insulation and comfort
- Radon remediation
- Repairs to make a home more resilient to natural disasters, like installing storm surge barriers and retaining walls, foundation retrofitting, and removing harmful brush or trees from fire zones
- Other updates or repairs (verify details with your lender partners)
Talk to your lender partners
Reach out to your lender partners to find out if they offer HomeStyle Energy mortgages. Any lender can offer HomeStyle Energy as an option and benefit from a credit when delivering the loan to Fannie Mae. No special approvals are required.
Buyer Benefits
Flexible
Your clients can finance efficiency improvement projects up to 15% of the as-completed appraised value of a home, and it's available nationwide.
Cost-Effective
Updated utilities result in lower costs in the future. Borrowers may be eligible for possible tax credits/rebates and can take advantage of today's competitive mortgage rates, which may be lower than other financing options.
Simple
Basic weatherization, water system, renewable energy and resiliency improvements (up to $3,500) do not require an energy report for program eligibility.
More Resources
Key product features
Up to 97%
(See Fannie Mae’s Eligibility Matrix for specific details based on the loan transaction)
Up to 15% of as-completed appraised property value
All one- to four-unit existing properties
Manufactured housing, provided no structural changes
All occupancy types permitted
Upgrades include:
- Storm surge barriers
- Foundation retrofitting for earthquakes
- Hazardous brush and tree removal in fire zones
- Retaining walls to address mud or water flows
Covers installation, no energy report required
No energy report required for:
- Basic weatherization and water efficient items up to $3,500
- Water efficiency devices
- Renewable energy sources including solar panels, wind power devices, geothermal systems
- Environmental hazard damage repairs or resiliency improvements
Entire PACE lien amounts (with purchase or refinance)
Financing for prior energy-related improvements: Up to 15% of property value (with refinance)
Bundle mortgage products for more flexibility and savings
Both HomeStyle Renovation and HomeStyle Energy mortgages may be combined with a HomeReady mortgage, so your low-income borrowers can take advantage of the following features:
- Better pricing
- Cancellable mortgage insurance (restrictions apply)
- Low down payment and flexible sources of down payment, which allows funds to come from gifts, grants, and down payment assistance programs
