The Energy Efficient Mortgages Program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured mortgage during a home purchase or refinance.
Anyone approved for a standard FHA loan qualifies for the program. The additional cost of the repairs are financed and added to the loan amount. However, you don’t need to qualify for the increase in payments, as EEM is based on the energy savings you will benefit from. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. Up to $200 of the cost of an energy inspection report may be included in the mortgage.
Replacement of single pane windows with energy efficient vinyl windows, central air or heater replacement, water heater wrap, upgraded insulation, weatherstripping etc.
Stolen, missing or obviously damaged items. Most appliances are not eligible. This program is not intended to be a coverall for severe damage to a property. We would recommend the 203(k) in this case.
How does this program work?
When your offer has been accepted, we will put you in touch with an EEM certified consultant who will evaluate the property. If there is enough benefit to the EEM, an inspection will be made and a bid will be drawn by a contractor for the work. After closing, the contractor will begin the work, and once the work is completed and a final inspection has been done, the funds will be released.