MaineHousing is working together with the Energy Programs Consortium (EPC) and Maine lenders to promote and support ENERGY STAR mortgages in Maine. This effort is part of a multi-state pilot program administered by EPC in collaboration with the U.S. Department of Energy, the U.S. E.P.A and with support from the Ford and Surdna Foundations.

ENERGY STAR is a registered trademark of the U.S. Department of Energy and the U.S. Environmental Protection Agency, and is recognized by more than 70% of consumers nationwide as a measure of energy efficiency and product quality.

ENERGY STAR mortgages are mortgages on homes that achieve 20% energy savings and provide financial incentive to the borrower. They can be offered in many forms, including:

• Mortgages to buy homes that need energy efficiency improvements and finance those improvements as part of the mortgage transaction;
  
• Secondary mortgages such as home equity products and home improvement loans; and
  
• Mortgages to buy or refinance homes that are already energy efficient.
  

While not all of these options are currently available in Maine, EPC is working with Maine lenders to make a wide range of ENERGY STAR mortgage options available to consumers.

Energy savings must be verified by an energy auditor using an approved audit protocol.

Energy auditors certified by MaineHousing’s Energy Audit Training and home energy evaluators who hold a Building Analyst Certification through Building Performance Institute can perform energy audits for ENERGY STAR mortgages.

• MaineHousing’s Home Energy Loan Program (HELP) offers home improvement loans that qualify as ENERGY STAR mortgages. Eligible low and moderate income homeowners may borrow up to $30,000 at a low fixed rate of only 3.95% (4.194% APR) for home improvements that increase home energy efficiency. The loans are offered through participating lenders, and purchased by MaineHousing.
• MaineHousing’s Pre-1976 Mobile Home Replacement Pilot Program provides ENERGY STAR mortgages. Eligible low-income homeowners of pre-1976 manufactured homes receive low interest and no interest loans for new, ENERGY STAR qualified manufactured homes.
• • MaineHousing is also developing an ENERGY STAR Mortgage product for first time homebuyers. We are committed to incenting homebuyers to invest in cost-effective home energy improvements so that they are less vulnerable to energy price spikes.

The US Environmental Protection Agency (EPA) has approved and authorized the Energy Programs Consortium (EPC), through the Opportunity Finance Network (OFN), to review and approve proposed ENERGY STAR Mortgage products. Maine is the first state in a multi-state pilot project to promote ENERGY STAR Mortgages with EPC assistance.

The application process involves an introductory meeting with EPC at the lender’s site. EPC verifies that the proposed product meets program criteria and that the lender has the capacity to support the product. The review usually takes only a matter of hours and results in an audit report. A third party firm reviews the audit report and approval is usually provided within a few days. With approval, the lender is authorized to offer ENERGY STAR mortgages and must submit an application to EPA to become an ENERGY STAR Partner.