7 Best Lenders for Energy-Efficient Mortgages

See NerdWallet's picks for the best energy-efficient mortgage lenders across different categories.

Abby Badach Doyle
Written by
Last updated on February 26, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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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

New American Funding: NMLS#6606

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at New American Funding
at New American Funding
Home loans overall
Best for borrowers with weaker credit

580

3%

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at New American Funding
at New American Funding
Veterans United

Veterans United: NMLS#1907

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at Veterans United
at Veterans United
4.0
/5
Home loans overall
Best for VA loans

620

0%

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at Veterans United
at Veterans United
Network Capital

Network Capital: NMLS#11712

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on NerdWallet
4.0
/5
Home loans overall
Best for variety of loan types

540

3%

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on NerdWallet
loanDepot

loanDepot: NMLS#174457

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on NerdWallet
3.5
/5
Home loans overall
Best for competitive mortgage rates

620

5%

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on NerdWallet
NBKC

NBKC: NMLS#409631

Top 3 most visited 🏆
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at NBKC
at NBKC
4.5
/5
Home loans overall
Best for rate transparency

620

3%

New American Funding
Learn more
at New American Funding
at New American Funding
New American Funding

New American Funding: NMLS#6606

4.0
Home loans overall
NerdWallet rating
Min. credit score

580

Min. down payment

3%

Why We Like ItGood for: first-time home buyers, military members and self-employed or underrepresented borrowers.
Pros
  • 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.
Cons
  • Mortgage origination fees tend to be on the high end.
  • Personalized mortgage rates are not available on the website without providing contact information.
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Veterans United
Learn more
at Veterans United
at Veterans United
Veterans United

Veterans United: NMLS#1907

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

0%

Why We Like ItGood for: veterans, active-duty service members and eligible reservists looking for VA loans.
Pros
  • 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.
Cons
  • 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
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on NerdWallet
Network Capital

Network Capital: NMLS#11712

4.0
Home loans overall
NerdWallet rating
Min. credit score

540

Min. down payment

3%

Why We Like ItGood for: borrowers looking to compete with all-cash offers or hoping to close quickly, as well as self-employed home buyers.
Pros
  • 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.
Cons
  • 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.
loanDepot
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on NerdWallet
loanDepot

loanDepot: NMLS#174457

3.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

5%

Why We Like ItGood for: borrowers who are comfortable with an entirely online experience, and who want a one-stop shop for buying and selling.
Pros
  • 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.
Cons
  • 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.
NBKC

NBKC: NMLS#409631

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: borrowers who want low rates and fees and an online experience with phone support. VA loans are an emphasis.
Pros
  • 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.
Cons
  • HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
Flagstar
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on NerdWallet
Flagstar

Flagstar: NMLS#417490

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: Borrowers who may benefit from Flagstar’s unique loan options, such as ITIN loans, loans for manufactured homes or physician loans.
Pros
  • 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.
Cons
  • 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
Learn more
at Guaranteed Rate
at Guaranteed Rate
Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: borrowers seeking a broad menu of loans, including jumbo and interest-only options, renovation loans and government-backed mortgages, as well as home equity lines of credit.
Pros
  • 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.
Cons
  • 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 from NerdWallet:

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.

To recap our selections...

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
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