Mortgage 

No matter what claims are made about the energy efficiency of the home you are buying, YOU will be paying the bills once you move in. An Energy Efficient Mortgage (EEM) Can Help You Take Control Of The Energy Performance Of Your Home.

Energy Efficient Mortgage (EEM) Services

What Is An Energy Efficient Mortgage?

Very simply, an EEM is a mortgage where the cost of installing “cost effective” energy improvements can be included in the total amount being financed (or refinanced) in any HUD/FHA, VA, or Fannie Mae mortgage. Homebuyers can generally finance from $3,000 to $8,000 worth of energy improvements directly into their mortgage so long as a Home Energy Rating System (HERS) Provider documents that the expected average monthly energy savings will be greater than the small amount added to the monthly mortgage payment to cover the $3,000 to $8,000 EEM. In Maine, almost every home can gain significant energy savings from just a few hundred to a few thousand dollars worth of “targeted” energy improvements.

How You Can Benefit From An Energy Efficient Mortgage (EEM)?

1. They clearly identify what the most cost effective energy improvements are that can be made to your home.
2. They allow you to finance the cost of installing those energy improvements directly into your mortgage package with all of the interest rate and tax savings that you probably Will Not get by trying to finance these improvements later. (such as when cold drafts start blowing through the home or heating oil approaches $2.00 per gallon.)
3. They can be used for both existing homes and for new home construction projects.
4. If you need it - Most EEM’s will allow you to stretch the standard amount that you can borrow (or refinance) to include those energy improvements.

Some of the Energy Financing Programs in Place Today.

• The HUD/FHA Energy Efficient Mortgage Program (EEM)
• The Veterans Administration (VA) Energy Efficient Mortgage Program.
• The Fannie Mae / Freddie Mac (EEM) Programs.
• The EPA Energy Star® Homes Program. (new construction)
• Plus - a growing number of proposed state and federal energy efficiency and energy tax credit programs.
  

Summary of the HUD/FHA, VA, and Fannie Mae Energy Efficient Mortgage Programs.

The HUD/FHA Energy Efficient Mortgage (EEM)

• Allows for the greater of $4,000 or 5% of appraised value up to $8,000 added to the mortgage for energy upgrades.
• For new or refinanced mortgages.
• 1-4 unit properties are eligible.
• Both existing homes and new home construction.
• Buyer qualifies only for the original loan amount.  No additional credit qualifying is required.
• Allows for 2% Debt-to-Income stretch.
• FHA maximum limits for the area may be exceeded.
• No additional cash requirements for the Buyer.
• No additional appraisal requirements.
• 90 days to complete the energy improvements.
• Solar options are allowable.

The Veterans Administration Energy Efficient Mortgage (EEM)

• Allows for up to $6,000 added to the mortgage for energy upgrades.
• For new or refinanced mortgages.
• 1-2 unit properties are eligible.
• Both existing homes and new home construction.
• Buyer qualifies only for the original loan amount.  No additional credit qualifying is required.
• Maximum limits for the area may not be exceeded.
• No additional appraisal requirements.
• 180 days to complete energy improvements.
• Solar options are allowable.

The Fannie Mae Energy Efficient Mortgage (EEM)

• Allows for up to 15% of adjusted value to be financed for energy upgrades.
• For new or refinanced mortgages.
• 1-4 unit owner occupied properties are eligible.
• Both existing homes and new home construction.
• Buyer qualifies for total loan amount after adding upgrades.
• Fannie Mae maximum loan limits may not be exceeded.
• There are additional cash requirements for the Buyer.
• No additional appraisal requirements. (Form 1224 only)
• 120 days to complete energy improvements.
• Solar options are allowable.

For more information on these programs go to: www.natresnet.org