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Press Release

Fannie Mae Improves Options for Energy Efficiency Financing

March 30, 2016

HomeStyle Energy Mortgage Makes Refinancing Loans, Financing New Improvements Easier

Andrew Wilson


WASHINGTON, DC – Fannie Mae (FNMA/OTC) has introduced HomeStyle® Energy mortgage, an enhanced option for borrowers who want to finance energy and water efficiency improvements to their home.  Borrowers with an existing, higher-interest energy improvement loan, can more easily roll that loan into a new mortgage or into a refinance of an existing mortgage.  In addition, borrowers will have options to finance new energy upgrades when purchasing or refinancing a home.  HomeStyle Energy mortgage can be used on 1-4 unit properties, including condominium units, and is available for all approved Fannie Mae lenders.

“The National Association of Home Builders has found that energy efficient features are highly desired by homeowners, and we are committed to helping lenders serve these customers,” said Carlos Perez, Senior Vice President and Chief Credit Officer for Single-Family, Fannie Mae.  “HomeStyle Energy mortgage will be particularly helpful to borrowers who want to pay off debt for existing energy improvements.  It will also benefit homeowners who want to make their home more comfortable and efficient.”

Borrowers who are purchasing a home and want to improve the energy efficiency of the property can now receive up to 15% of the as-completed appraised value of the home to use for the upgrades.  An energy report is required, and the lender must place these funds into an escrow account.  Borrowers can finance up to $3,500 in weatherization or water-efficiency upgrades without having to obtain an energy report.

HomeStyle Energy mortgages can simplify the financing of energy-efficient improvements. This financing is likely more affordable than a subordinate lien, home equity line of credit, or unsecured loan, or loan from an HVAC vendor.  In addition, most PACE loans are not eligible for Fannie Mae–backed mortgages, but can be paid off with this option.

Fannie Mae’s guide announcement on HomeStyle Energy mortgage is available here and a fact sheet for lenders and other resources are available here.

Fannie Mae is also the market leader in green solutions for the multifamily industry, and currently offers several options to reward green properties and to give multifamily borrowers the flexibility to finance energy efficient improvements. For more information on Fannie Mae’s Multifamily Green Initiative, please visit

Fannie Mae enables people to buy, refinance, or rent homes.

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