This question and answer page has been prepared to help you better
understand the Energy Efficient Mortgage process.  Besides the
mortgage payment, utility bills are one of the biggest monthly expenses
of home ownership.  Energy Efficient Mortgage Program was designed
to finance improvements that increase the home's energy efficiency,
enhance the home owner's year round comfort, increase the home's
resale value and help conserve our communities’ resources while
helping the environment.

Q. What exactly is an Energy Efficient Mortgage?

A. The Energy Efficient Mortgage is a nationwide program developed to allow
the financing of cost effective energy improvement into the base loan amount
during the purchase or refinance of your home.  
THE ENERGY EFFICIENT MORTGAGE IS ENDORSED NATIONWIDE BY:
   Mortgage Organizations             Realtor Associations
   Banking Institutions                    Utility Companies
   Environmental Groups               Government Agencies

Q. How much can I expect to save a month with the
    Energy Efficient Mortgage?

A. The national average of energy savings is 50% on heating & cooling cost
   and 30% on the annual utility cost.

Q. My lender told me that they do not offer energy
     efficiency loans or mortgages, what should I do?

A. Because this is a voluntary home buyer program there are many lenders who
  are not aware of this great opportunity.   Please call us and let us know, so we
can work with your lender on finding a solution for you.

Q. Are the payments on my energy improvements tax                  
     deductible?

A. Yes! The cost of the energy improvements become part of your
  mortgage balance. The interest is tax deductible.  If you purchased energy
  improvements through private financing or credit cards, you would not be able to
  deduct that interest.

Q. How do I know if the home is or isn't energy efficient?

A. Most homes 15 years or older are typically in need of additional energy
   efficient improvements, and/ or replacements due to age or lack of energy
   efficiency.  A home inspector will often indicate these energy efficient needs at
   time of inspection.

Q. Is there any special terminology needed on the purchase        
    agreement?

A. No! The offer is written as usual.  The Energy Efficient Mortgage is a
   voluntary program designed exclusively for the home buyer to improve the energy
   efficiency and value in the home they are purchasing.

Q. Is there a time limit on requesting the Energy
Efficient Mortgage?

A. Yes! Once escrow closes, it is too late to request an Energy
   Efficient Mortgage.  All Energy Efficient Mortgage documentation with firm
   improvements cost, calculations and HERS rating report must be prepared before
   the close of escrow.

Q. Is there any delay on the closing of escrow?

A. No! There is no delay in closing; the home records as scheduled and all fees
   and closing costs are paid as usual.  Note: Energy Efficient Mortgage funds are
   held in an escrow account until all energy improvements have been installed.

Q. When are the energy improvements installed?

A. After the close of escrow, at the purchaser's convenience.  Usually, within
    two weeks, the installation of all requested energy improvements is completed
    by licensed and utility approved California contractors. Only after completion are
    the EEM funds disbursed to the contractors by Smart Energy Solutions.

Q. Who determines which energy improvements are needed?

A. A Certified Independent Home Energy Rater performs a complete energy
    analysis and calculates the existing conditions and makes recommendations for
    energy saving improvements.  The rating fee is determined on a regional basis.
    Note: The purchaser picks which "cost effective" improvements that they need,
    want or wish to have installed.

Q. How do I begin the EEM Process?
A. Contact us as soon possible after your offer has been accepted.  Let
    your Real Estate Agent and Lender know that you are definitely interested in the
    Energy Efficient Mortgage Program.  

Q. Do I have to use a different or special Lender?
A. NO! You use your favorite Mortgage Company and Realtor.

Q. Can I pick the energy improvements I want to have installed?
A. YES! You pick the energy improvements you Wish, Want, or Need as long
     as the Calculations from the HERS Report show the recommended improvements
     you want are “Cost Effective.”  “Cost Effective” means the energy savings must
     be greater than the payment increase.

Q. Can I get utility or manufactures rebates?
A. Yes! All Utility and Manufactores rebates go directly to you.

Q. Do I need an Energy Efficient Mortgage Service Company       
(facilitator)?      
A. Because of the vast amount of documentation, detailed calculations, gathering of
  installation bids from licensed & bonded contactors and the required completion
  dates, lenders advocate that you appoint an EEM Service Company                
  (facilitator) as your representative to complete the Energy Efficient Mortgage
  process from start to finish.      

Q. Isn’t the HERS Rater like a Home Inspector?
A. NO! Your HERS Rater is Certified under State and National Guidelines and must
  complete an extensive Training and Certifying Standard under the National
  Association of State Energy Officials (NASEO) National Home Energy Rating
  Technical Guidelines, the guidelines set-forth by the Mortgage Industry National
  Home Rating Standards and Residential Energy Services Network (RESNET)
  Providers Accreditation Standards as designated by the United States
  Environmental Protection Agency (EPA) and in compliance to the Energy Star
  Homes Standard.