7 Best Lenders for Energy-Efficient Mortgages
See NerdWallet's picks for the best energy-efficient mortgage lenders across different categories.
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An energy-efficient mortgage, or EEM, helps homeowners finance energy-efficient homes or renovations. The cost of energy-efficient upgrades is rolled into your mortgage payment. That means you can enjoy lower utility bills sooner, instead of waiting to tackle energy-saving projects over time.
EEMs are available when buying a home that needs work or refinancing your existing mortgage. You can also use an EEM to buy a home with existing energy-efficient features. There are a variety of options, including conventional mortgages and government-backed loans insured by the Federal Housing Administration and the Department of Veterans Affairs.
NerdWallet picked some of the best energy-efficient mortgage lenders in a variety of categories so you can determine which one is right for you.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
7 Best Lenders for Energy-Efficient Mortgages
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 580 | 3% | Top 3 most visited 🏆 Learn more at New American Funding | |
620 | 0% | Learn more at Veterans United | ||
 Network Capital: NMLS#11712 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet | |
 loanDepot: NMLS#174457 LEARN MORE on NerdWallet | 620 | 5% | LEARN MORE on NerdWallet | |
620 | 3% | Learn more at NBKC |
New American Funding: NMLS#6606
580
3%
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Has a program to enable buyers to make cash offers.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage origination fees tend to be on the high end.
- Personalized mortgage rates are not available on the website without providing contact information.
Veterans United: NMLS#1907
620
0%
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Mortgage rates are on the low side, according to the latest federal data.
- Parent company’s mortgage rates are on the higher side, according to the latest federal data.
- Does not offer second mortgage options like home equity loans or HELOCs.
Network Capital: NMLS#11712
620
3%
- A good selection of loan products, including government-backed FHA and VA mortgages.
- Provides a “same-as-cash” loan that allows borrowers to compete with cash offers.
- Closing possible in as few as 15 days, the lender says.
- Doesn't lend in all states.
- Website doesn’t provide customized mortgage rates.
- Lender fees are on the high side, according to the latest federal data.
- Offers a variety of repayment terms.
- Online loan calculator lets borrowers compare monthly payments and lifetime interest.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- No sample interest rates are provided.
- Origination fees are on the higher end, according to the latest federal data.
- Lender’s website does not have a live chat feature.
- Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
- Offers low rates and fees compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
Guaranteed Rate: NMLS#2611
620
3%
- Offers a one-day mortgage approval process.
- Offers a generous selection of loans, including government-backed, interest-only, ITIN, jumbo and renovation loans.
- Advertises a HELOC that can be funded in as few as five business days.
- Origination fees are higher than average, according to the latest federal data.
- HELOC has a relatively short draw period, which may not provide flexibility for someone who wants the option of accessing home equity over a longer period.
What is an energy-efficient mortgage?
An energy-efficient mortgage helps buyers finance a home that is energy-efficient, or can be made so through home improvements. With an EEM, buyers may be able to qualify for a larger loan or better terms because lenders factor in the savings of lower energy bills.
To qualify for an EEM, the home must undergo a home energy assessment. A certified professional calculates the home’s current energy efficiency and recommends which energy-saving improvements would be the most cost-effective.
After reviewing the assessment, the lender approves a list of projects. The cost of those improvements, such as new windows or solar panels, can be rolled into your mortgage. That might mean a higher monthly mortgage payment, but it’s possible for homeowners to save money overall by lowering utility bills.
» MORE: Best mortgage lenders
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Last updated on February 26, 2024
Methodology
The star ratings on this page reflect each lender's overall star rating. Read more about how we determine those ratings. The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have at least a 1% market share), lenders with significant online search volume, and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must earn at least 3.5 stars in NerdWallet’s home loans overall rating and offer energy-efficient mortgages for home purchase, refinance or both.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also used 2022 Home Mortgage Disclosure Act data for origination volume, origination fee, rate spread and share-of-product data.
NerdWallet's Best Lenders for Energy-Efficient Mortgages
- New American Funding: Best for borrowers with weaker credit
- Veterans United: Best for VA loans
- Network Capital: Best for variety of loan types
- loanDepot: Best for competitive mortgage rates
- NBKC: Best for rate transparency
- Flagstar: Best for overall mortgage experience
- Guaranteed Rate: Best for ease of application
