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Energy Efficient Mortgages (EEM)

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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:

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  • 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

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