FHA Energy Efficient Mortgage

Home Owner Guide

The Energy Efficient Mortgage means comfort and savings

When you are buying, selling, refinancing, or remodeling your home, you can increase your comfort and actually save money by using the Energy Efficient Mortgage (EEM).  It is easy to use, federally recognized, and can be applied to most home mortgages.

EEM's provide the borrower with special benefits when purchasing a home that is energy efficient, or that can m\be made energy efficient through the installation of energy-saving improvements.  An energy auditor will test the house and recommend a scope of work to get the most bang for your buck in energy improvements.

Home owners with lower utility bills have more money in their pocket each month.  They can afford to allocate a larger portion of their income to housing expenses.

Benefits of the EEM are:

• Save Money
• More Comfortable Home
• The Home is certified afterwards

The FHA Energy Efficient Mortgage covers upgrades for new and existing homes.

Pay for energy improvements easily, through your mortgage.  Typical improvements are insulation, furnace, water heater, appliances, windows, and weather stripping.

Your lender can increase your loan to cover energy improvement costs.  Monthly mortgage payments increase slightly, but you actually save money because your energy bills will be lower.

Key Features include:

• Available for 1-4 family units and Condos based on FHA loan limits
• No re-qualifying
• No additional Down Payment
• No new appraisal

The maximum amount of the portion of the EEM improvements is 5% of the property value or the Sales Price.

Who Benefits from from the Energy Efficient Mortgage?

BUYERS:

• Qualify for a larger loan on a better home!
• Get a more comfortable home NOW.
• Save money every month from Day One.
• Increase the potential resale value of your home.

SELLERS:

• Sell your home more quickly.
• Make your house affordable to more people.
• Attract attention in a competitive market.

REMODELERS/REFINANCERS:

• Get all the EEM benefits without moving.
• Make improvements which will actually save you money.
• Increase the potential resale value of your home.

EEM's may be combined with 203(k) FHA Home Rehabilitation loans.  The FHA Rehabilitation loan enables a home buyer to obtain a single loan to finance both acquisition and to complete simple or major improvements after loan closing.