Details | FHA Energy Efficient Mortgage Program


Funder

 

Federal Housing Administration

Implementer

 

Certified Federal Housing Administration Lender

Description

 

The Federal Housing Administration (FHA) Energy Efficient Mortgage 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 home purchase or refinancing mortgage.An FHA mortgage may exceed the 0rmal maximum loan limits by the cost of energy efficientimprovements, providing those improvements were verified to be cost-effective, meaning thatthe total cost of the improvements is less than the total present value of the energy saved overthe useful life of the energy improvement. One- to four-unit existing and new properties are eligible. The borrower may be qualified for the loan without the additional loan funds used for energy upgrades, but must make a required minimum 3.5 percent cash investment in the property based on the lesser of sales price or appraised value. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating, which may be financed as part of the cost-effective energy package. Energy improvements to an existing home may be installed within a limited time period afterthe insured loan has closed, depending on the program under which the mortgage is insured. Energy improvements to a newly constructed home must be installed prior to closing. The maximum mortgage amount for a single-family unit depends on its location and is adjusted annually.

Funding guidance

 

Applications open

 

None

Applications close

 

None

Type

 

Secured Loan

Category

 

Financing

Territory

 

United States

Applicant type

 

Private Resident

Project

 

Real Estate and Asset Purchases  |  Rehabilitation of Existing Whole Building  |  Rehabilitation of Part of an Existing Building  |  Whole New Building Construction

Sector

 

Residential

Sub-sector

 

Single Family

Sustainability

 

Energy Efficiency in Buildings  |  Energy Storage  |  Generation Systems

Small business

 

False

Disadvantaged communities

 

False

Cost sharing amount

 

None

Cost sharing percent

 

None

Cost sharing note

 

Minimum repayment years

 

None

Maximum repayment years

 

None

Interest rate comment

 

Incentive