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