Understanding the Energy Efficient Mortgage (EEM)
Designed by HUD as a way to add incentives for home-owners to pursue GREEN and ENERGY EFFICIENT improvements on their next home purchase or home refinance, the EEM (Energy Efficient Mortgage) was created.
An energy efficient mortgage recognizes that by increasing the overall efficiency and lowering a home’s energy consumption that the monthly energy savings actually increase HOME AFFORDABILITY!
Because the home is energy efficient, you will save on utility costs and, thus, be able to devote more income to your mortgage payment / mortgage balance. What a concept right? Why is every mortgage NOT ENERGY EFFCIENT?!
EEM improvements can include energy saving appliances, windows, HVAC systems and even SOLAR technology.
Under the FHA energy efficient mortgage program, a borrower can finance into the mortgage 100 percent of the cost of eligible energy-efficient improvements, subject to certain dollar limitations, without having to worry about dollar for dollar return when it comes time to get the home appraised.
To be eligible for inclusion into the mortgage, the energy-efficient improvements must present energy savings throughout the life of those improvements. How the heck do you measure that?
Simple, you get a Home Energy Rating Report (HERS). Not simple? Have no idea WHERE to get a H.E.R.S report? RESNET is the source I use and is a GREAT place to find all things GREEN HOME related.
Find a HERS Consultant and more by clicking the link.
The EEM is not the only mortgage product you use to go green. In fact, you can use the EEM in conjunction with FHA’s popular (and AWESOME) 203K Renovation loan.
You can also use the 203K Loan own its own without having to get a HERS report and green your home to your heart’s desire. Heck, go off the grid entirely if you want to, it’s perfectly doable with a 203K loan.
So, are you tired of throwing all of that money out the window (pun intended) on your monthly energy bills? I won’t even get into the saving the planet part, but if your interested in that kinda thing then a GREEN RENOVATION loan can help you do your part.
Click IT!
Looking for more info before you decide?
FHA 203K Streamline – What Repairs Can I Do??
Ten Ways RENOVATION Loans Create HUGE Value
Using GREEN Renovation Loans – Buy Cheap, Renovate Green & SaveÂ
203K Loans – Basics and GuidelinesÂ
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