| Financing |
What is an Energy Efficient Mortgage?
“Energy Efficient Mortgages,” also known as EEMs, make it
easier for borrowers to qualify for loans to purchase homes
with specific energy-efficiency improvements. Lenders can
offer conventional EEMs, FHA EEMs, or VA EEMs.
Conventional Energy Efficient Mortgages
Conventional EEMs can be offered by lenders who sell their
loans to Fannie Mae and Freddie Mac.
“Energy Efficient Mortgages,” also known as EEMs, make it
easier for borrowers to qualify for loans to purchase homes
with specific energy-efficiency improvements. Lenders can
offer conventional EEMs, FHA EEMs, or VA EEMs.
Conventional Energy Efficient Mortgages
Conventional EEMs can be offered by lenders who sell their
loans to Fannie Mae and Freddie Mac.
Conventional EEMs increase the purchasing power of buying an energy efficient home by allowing the lender to increase the
borrower’s income by a dollar amount equal to the estimated energy savings. The Fannie Mae loan also adjusts the value of the
home to reflect the value of the energy efficiency measures.
FHA Energy Efficient Mortgages
FHA EEMs allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already
approved mortgage loan (as long as the additional costs do not exceed $4,000 or 5 percent of the value of the home, up to a
maximum of $8000, whichever is greater). No additional down payment is required, and the FHA loan limits won’t interfere with
the process of obtaining the EEM.
VA Energy Efficient Mortgages
The Veteran’s Administration (VA) EEM is available to qualified military personnel, reservists and veterans for energy
improvements when purchasing an existing home. The VA EEM caps energy improvements at $3,000–$6,000.
To learn more about EEMs contact Fannie Mae, Freddie Mac, the FHA or the VA. Additional information about writing energy-
efficient mortgages can be found on the Web sites for the U.S. Department of Housing and Urban Development (HUD) and the
Residential Energy Services Network (RESNET) or contact info@builtbyadams.com today and we will help you determine the
best financial strategy for you new ENERGY STAR home. Through access to preferred lending sources, we can help you meet
your financing needs.
borrower’s income by a dollar amount equal to the estimated energy savings. The Fannie Mae loan also adjusts the value of the
home to reflect the value of the energy efficiency measures.
FHA Energy Efficient Mortgages
FHA EEMs allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already
approved mortgage loan (as long as the additional costs do not exceed $4,000 or 5 percent of the value of the home, up to a
maximum of $8000, whichever is greater). No additional down payment is required, and the FHA loan limits won’t interfere with
the process of obtaining the EEM.
VA Energy Efficient Mortgages
The Veteran’s Administration (VA) EEM is available to qualified military personnel, reservists and veterans for energy
improvements when purchasing an existing home. The VA EEM caps energy improvements at $3,000–$6,000.
To learn more about EEMs contact Fannie Mae, Freddie Mac, the FHA or the VA. Additional information about writing energy-
efficient mortgages can be found on the Web sites for the U.S. Department of Housing and Urban Development (HUD) and the
Residential Energy Services Network (RESNET) or contact info@builtbyadams.com today and we will help you determine the
best financial strategy for you new ENERGY STAR home. Through access to preferred lending sources, we can help you meet
your financing needs.
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