Asheville’s commitment to sustainability runs deep. Green home mortgages can help first-time homebuyers and seasoned homeowners finance energy-efficient homes and eco-friendly renovations.
Here’s what our local West Asheville mortgage lenders share with neighbors every week about green mortgage options that can help you build or buy the sustainable home you’ve been envisioning in Western North Carolina.
What Is a Green Home Mortgage?
Green home mortgages are specialized loan programs to help homebuyers:
- Finance properties with energy-efficient features
- Fund eco-friendly renovations
- Support new construction that meets green building standards
Traditional mortgages typically only consider the purchase price. Green mortgages factor in the long-term savings from lower utility bills and may allow you to potentially qualify for a higher loan amount or more favorable loan terms.
Why Asheville Buyers Are Going Green
Our mountain climate means heating and cooling costs can add up quickly. Energy-efficient homes with proper insulation, high-performance windows, and efficient HVAC systems can significantly reduce these expenses.
Green homes also tend to hold their value better and appeal to a growing segment of environmentally conscious buyers in Asheville when it’s time to sell. Organizations like Green Built Alliance have been promoting sustainable building practices in our region for years and have created a strong foundation of green building expertise and certified professionals.
Green home loans recognize that energy-efficient homes cost less to operate over time and can improve your overall affordability and reduce your environmental impact.
Types of Green Mortgage Programs
Several loan programs support green home financing, each with different benefits:
- FHA Energy-Efficient Mortgages (EEMs) allow you to finance energy improvements up to 5% of the property value without additional down payment requirements.
- VA Energy-Efficient Mortgages offer similar benefits for eligible veterans and service members.
- Fannie Mae’s HomeStyle® Energy program finances both the home purchase and energy improvements in a single loan, while its Single-Family Green MBS supports lenders who prioritize energy-efficient properties.
- Freddie Mac’s GreenCHOICE® Mortgages offer reduced interest rates for homes that meet specific energy-efficiency standards.
Qualifying Improvements That Make a Difference
Green mortgage programs typically cover improvements that demonstrably reduce energy consumption, such as:
- Solar panels
- High-efficiency HVAC systems
- ENERGY STAR® appliances
- Upgraded insulation
- Triple-pane windows
- Water-saving fixtures like low-flow toilets and efficient water heaters
The monthly energy savings over the improvement’s expected lifespan should justify the additional loan amount.
Certified Green Homes Add Value
Homes with third-party green certifications may help you qualify for better green mortgage terms. Look for properties with:
- ENERGY STAR® certification
- LEED® (Leadership in Energy and Environmental Design) ratings
- HERS (Home Energy Rating System) scores
These certifications provide independent verification of a home’s energy performance and can increase both your financing options and the property’s resale value. In Asheville’s competitive market, certified green homes often stand out to buyers who value sustainability and long-term cost savings.
“Zack was so diligent with our loan. He was on top of every piece of information needed. He was wonderful to explain every detail that we needed to understand. He went above and beyond to see that we had everything needed to make our loan come through. I highly recommend speaking with Zack prior to making any real estate purchase.”
—Lynette C., 5-Star Google Review
Benefits Beyond the Environment
Lower utility bills mean more money in your pocket each month (these savings that can add up to thousands of dollars annually for efficient homes) and many green improvements also qualify for federal tax credits, state rebates, or utility company incentives that further offset costs.
From an investment home perspective, many green homes typically experience stronger appreciation and shorter time on market when you eventually sell. Importantly, you’re also reducing your carbon footprint and contributing to Asheville’s broader sustainability goals.
Related: 6 Ways We Can Protect Our Mountains
Let’s Build Your Green Future
We’re here to help you explore your options and find the financing solution that supports both your environmental values and your financial well-being. Call us at (828) 348‑1907, visit our West Asheville mortgage office at 862 Haywood Rd, Asheville, NC 28806, or reach out through our website to schedule a consultation to turn your vision of sustainable homeownership into reality.
