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WHAT IS AN ENERGY EFFICIENT MORTGAGE (EEM)?

The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of adding energy-efficiency features to a new or existing home as part of an FHA-insured home purchase. The EEM can be used with both 203(b) and 203(k) loans. Basic guidelines for EEMs are as follows:

The cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements.

One- and two-unit new or existing homes are eligible; condos are not.

The improvements financed may be 5% of property value or $4,000, whichever is greater. The total must fall within the FHA loan limit.



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Directory Of Energetic Real Estate Brokers On The Net

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