For many veterans, the dream of homeownership goes beyond simply buying a house—it’s about making that house efficient, comfortable, and affordable to maintain. One of the lesser-known benefits of VA home loans is that they can support certain energy-efficient upgrades. However, not every improvement qualifies, and knowing the difference can help veterans plan wisely.
What VA Loans Can Cover
The VA offers an Energy Efficient Mortgage (EEM) option that can be added to standard VA home loans. This feature allows borrowers to roll the cost of specific energy upgrades into their mortgage rather than paying out of pocket. Qualifying improvements often include:
- Solar heating and cooling systems to reduce utility costs.
- Insulation upgrades in walls, attics, and crawl spaces.
- Weather-stripping and caulking to improve heating and cooling efficiency.
- High-efficiency HVAC systems that lower long-term energy bills.
- Storm windows and doors provide better protection and insulation.
These upgrades not only make a home more affordable to operate but can also increase comfort and reduce the environmental footprint.
What VA Loans Don’t Typically Cover
Not all home upgrades fall under the EEM program. Luxury improvements or cosmetic changes are usually excluded. Examples include:
- Appliances, such as refrigerators or washing machines.
- New roofing, unless specifically tied to energy efficiency.
- Swimming pools or spas, even if marketed as “energy-saving.”
- General remodeling projects that don’t directly improve efficiency.
Understanding this distinction helps borrowers avoid frustration and ensures they focus on upgrades that meet VA guidelines.
Limits and Considerations
The VA caps the amount that can be financed for energy improvements—usually around $6,000, depending on the scope of work. Smaller projects under $3,000 may require minimal documentation, while larger ones can trigger additional reviews. It’s also important to note that the improvements must be cost-effective, meaning the savings generated should reasonably balance the expense over time.
Tips for Veterans Considering Energy Upgrades
If you’re thinking about making your home more efficient with the help of VA home loans, here are some steps to keep in mind:
- Get an energy audit to identify which upgrades will have the most impact.
- Work with a lender familiar with VA Energy Efficient Mortgages.
- Prioritize improvements that lower costs and improve comfort.
- Plan for paperwork, since larger projects may require contractor bids and cost-effectiveness reviews.
Adding efficiency upgrades can be a smart way to improve both quality of life and long-term affordability.
Explore Your Options with VA Financing
Energy efficiency can make a big difference in how affordable and enjoyable a home is to live in. With the right approach, VA home loans can help veterans not only buy a home but also improve it for the future.
Interested in learning how VA financing could work for your situation? Contact Mortgage Solutions Financial today and let our team guide you through the process of securing a loan and exploring energy-efficient upgrade options.
