Advice provided by: Rob Freeman Jr, LEED AP, Green-Buildings.com

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John asks: Thanks... that (answer) is helpful. I would like to look into this program when it comes to New York. I need to get a New York energy audit... Do I need to go through Energy Star for this?

Answer: Hi John, thanks again. As you know, in order to participate in the ENERGY STAR Mortgage Program, homeowners must make improvements to their homes (existing or new owner occupied, single family residential) which achieve a minimum twenty percent (20%) energy savings compared to a pre-improvement efficiency baseline.

As such, participants must be able to document those savings by completing an energy efficiency audit. Unlike other government energy efficiency programs, the ENERGY STAR program does not mandate a single type of audit nationwide. Borrowers may use whatever kind of audit is approved and available in that borrower’s state.

So, any energy auditor who is approved in New York may do this work for you so that you can be qualified for an ENERGY STAR mortgage. The cost of this service may run from as little as $100.00 to as much as $500.00 for a single family home. The determining factors for this cost vary, but may include the average cost of a building's utility bill over the previous year, or the square footage of the home, or the provider may charge a flat fee.

Also, it's important to keep in mind that, in order for lenders to participate in this program, they must incorporate a "verifiable borrower benefit" (i.e. a cost reduction) such as:

1. A discounted mortgage rate
2. Closing costs assistance
3. Other benefits that will help reduce the cost of the total loan package.

An option under number 3. above includes having the lender cover the cost of the audit.