| Home» Energy Efficient Mortgage EEM|
FHA Energy Efficient Mortgage Program
|FHA Energy Efficient Mortgage (EEM) aims at cutting down utility bills of a homebuyer or homeowner by adding energy efficiency features to their homes, and thus allowing them to save enough to pay mortgages. The program came into existence in 1992 with a pilot demonstration involving five US states. Later in 1995, the pilot was expanded to cover all US states and made a national program.
EEM is not a separate mortgage, other than the one you have for buying or refinancing a home. It comes as a single mortgage combined with your regular home-buying or refinancing mortgage. You need not qualify for it separately if you have already been qualified for an FHA-insured loan program.
The additional money you receive will not require any down payment also. The fund is released by a lending institution, bank, mortgage company or loan association, and not by the Federal Housing Administration. FHA only insures loan provided by an approved lender.
FHA Energy Efficient Mortgage Fact Sheet
The details of EEM program are available on HUD’s website. However, the fact sheet regarding the same has been released by Energy Star, which is a joint program of the US Environmental Protection Agency and the US Department of Energy.
Available in downloadable PDF format, this fact sheet explains the working of EEM loan program and also the eligibility requirements and the types of improvements one can expect through this program. As far as the eligibility is concerned, EEM is open to anyone who has satisfactory credit, enough funds to close the loan and steady income resources to meet the monthly payment requirements.
The property must be a one- to four- unit single family home. Allowable types of properties include detached houses, townhouses and condominiums. To check whether a disclosure statement is required under the loan program you can refer to the HUD Mortgagee Letters.
Loans are made by approved lenders. You can search FHA-approved lenders using the resources provided by the US Department of Housing and Urban Development. You can even have a complete list of HUD-approved agencies in your areas by calling toll-free 1-800-569-4287.
FHA Power Saver Loan Program
FHA has recently launched a new pilot program that aims at helping borrowers with sufficient credit obtain low-cost loans for making energy saving improvements to their homes.
Known as Power Saver Loan Program, this program will offer a maximum of $25,000 for incorporating energy-efficient features like installation of insulation, doors and windows, duct sealing, HVAC systems, water heaters, solar panels, and geothermal systems. The Power Saver program is seen as an extension of the Recovery through Retrofit initiative launched a year ago.