Energy Efficient Mortgage Program (EEM)

FHA’s Energy Efficient Mortgage program (EEM) helps home buyers 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.

EEM’s recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs allow a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a down payment on it. Anyone who qualifies for a standard FHA loan (203B), 203K or 203K Streamline loan can add the Energy Efficient Mortgage feature to their loan.

iLoan strongly recommends that should you choose to purchase a home with a FHA loan that has an EEM feature that you work with a Realtor that has experience with EEM transactions. There are additional steps in the purchase contract and an additional inspection required when doing an EEM loan.