FHA Energy Efficient Mortgage (EEM)
Federal Housing Administration
Program Overview
The Energy Efficient Mortgage program allows FHA borrowers to include the cost of energy-efficient improvements in their mortgage without requiring additional qualification. Improvements must be cost-effective, meaning savings equal or exceed improvement costs.
Eligibility Requirements
Available for 1-4 unit existing and new properties, condominiums, and manufactured housing. Borrower must qualify for base mortgage amount and make minimum 3.5% down payment.
Additional Requirements
Home energy assessment required to identify cost-effective improvements. Assessment may be financed as part of energy package. Improvements must be installed within limited time period.
How to Apply
1. Apply for FHA mortgage with approved lender 2. Request Energy Efficient Mortgage add-on 3. Obtain home energy assessment from qualified assessor 4. Lender processes EEM with energy improvement costs 5. Complete improvements within specified timeframe