i

HOME :: ABOUT US :: CAREERS :: EDGE ENERGY BLOG :: CONTACT USG2I
hh

There are several types of Energy Efficient Mortgage Programs in existance.

Talk to our staff today! Ask us about your questions.
   

Energy Ratings qualify for EEMs

At EDGE, we can provide home-owners with either an Energy Audit or an Energy Rating.

In most cases, it is an Energy Rating which your lender will require before moving to closing.

Energy Efficient Mortgages (EEMs) and Energy Improvement Mortgages (EIMs) should be discussed with your own licensed mortgage lender or broker. The information contained on this page is for educational purposes only.

If you'd like, we can give you a list of our trusted mortgage loan affiliates with a copy of your rating to assist you in obtaining your own EEM or EIM.

 

Types of Energy Efficient Mortgages:

Federal Housing Administration (FHA) EEMs

The FHA Energy Efficient Mortgage covers upgrades for new and existing homes and is now available in all 50 states. Key features includes:
  • Loan limits may be exceeded
  • No re-qualifying
  • No additional down payment
  • No new appraisal
  • $4,000 or 5% of the property value (up to $8,000) may be financed

203(k) FHA Home Rehabilitation Loans

The FHA 203(k) program enables a home buyer or investor to obtain a single loan to finance both property acquisition and complete major improvements after the time of loan closing. Can be used in conjunction with the FHA EEM. Key features include:
  • Loan limits may be exceeded
  • Total cost of improvements must exceed $5,000

Veterans Affairs (VA) EEMs

The VA Energy Efficient Mortgage is available to qualified military personnel, reservists and veterans in all 50 states for energy improvements when purchasing an existing home. Key features include:
  • $3,000 of upgrades may be financed based solely on documented costs
  • Up to $6,000 may be financed if upgrades are deemed cost effective

Fannie Mae and Freddie Mac EEMs

Fannie Mae's underwriting guidelines allow their approved lenders to increase debt-to-income (DTI) ratios by 2% for Energy Efficient Mortgages. With an expanded qualifying ratio, home buyers can afford to buy a larger house or roll the costs of their energy improvements into ESCROW and pay them off in a monthly fashion. Other lenders allow the projected energy cost savings as a "compensating factor" when making other decisions about a loan application.

 

Home :: Home Energy Solutions :: About Us :: Testimonials :: Financing :: Request an Estimate
EDGE Energy is a division of
Equity Development and Growth Entreprises, Corp