Energy Efficient Mortgages (EEM)

It pays to be “Green” with an Energy Efficient Mortgage (EEM) because it allows CA 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 home, or 150% of the conforming Freddie Mac limit to the loan for energy conservation improvements up to $8,000.
• No additional income qualifications
• 100% of improvements financed (no CLTV cap)
• Work completed after loan closing
• Typical energy improvements include:
• Central heating & air conditioning
• Dual-pane windows
• Increased attic/wall insulation
• Energy efficient water heater