The Energy Efficient Mortgage (EEM) allows FHA borrowers the opportunity to finance energy conservation improvements into the home loan.
- Add the lesser of 5% of:
- The value of the property, or
- 115% of the median area price of a single family dwelling, or
- 150% of the conforming Freddie Mac limit to the loan for Energy Conserving Improvements
- No additional income-qualifications
- 100% of improvements financed (no LTV cap)
- Work completed after loan closing
- Can be combined with FHA 203(k) Streamline, weatherization or MCC!
- Prior to offering the EEM, an EEM Facilitator must be procured
Typical Energy Improvements Include
- Central heating and air-conditioning
- Dual-pane windows.
- Increased attic/wall insulation
- Energy efficient water heaters
FHA High Balance
- Minimum 620 FICO
- HUD REO
- Streamline Refinance (No Underwriting Fee); minimum 640 FICO
- FHA County Loan Limits