Energy Efficient Mortgage (EEM)

Include the cost of adding energy efficient improvements with an Energy Efficient Mortgage.


Energy Efficient Mortgage (EEM)

Highlights of the Energy Efficient Loan Program

  • Available with FHA or VA mortgages
  • Can be used with 203k programs
  • Finance energy efficient home improvements through your mortgage
  • Can be used for 1 to 4 unit properties

What is an Energy Efficient Mortgage?

Energy Efficient Mortgages (EEMs) are designed to aid homeowners and potential homeowners with their desire to add or include energy efficient aspects to their current or future homes. Sometimes referred to as Green Mortgages or Green Loans, EEMs are offered through FHA and VA approved lenders and allow homeowners to finance their qualified energy efficient improvements by including them in the financing of their mortgage.

How an EEM works:

If you are looking to obtain an EEM, you must first have a home energy assessment done on the home. The assessment helps identify where energy efficiency opportunities are and see how cost-effective they would be. After the assessment is completed by an energy rater, assessor, or auditor, a home energy report is created. The report includes any suggestions for improvements as well as estimates of energy savings. Based on the home energy report, your lender is able to determine the amount of the mortgage.

Examples of Energy Efficient Improvements that can be made with an EEM:

  • Dated windows in need of replacement
  • Insufficient insulation
  • Old, inefficient furnace
  • Inefficient water heater
  • Any feature of the home that compromises its energy efficiency

You could benefit from the Energy Efficient loan program if you:

  • Are interested in making energy efficient improvements on your current home
  • Want to reduce your household energy bills
  • Want to have a smaller impact on the environment
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