FHA Energy Efficient Mortgage Program
Make Upgrades. Lower utility bills. Boost property
values. CREFCO helps you refinance with an Energy Efficient
Mortgage.
Energy Efficient Mortgages - Guaranteed by Law to
Save You Money
 Given
the current environmental and economic client, the U.S
Government's Energy Efficient Mortgage Program (EEM)
recognized the significant dual benefit of having
homeowners make energy efficient upgrades to their homes.
That is;
Because of this win-win scenario, the government now
provides significant incentives for homeowners to make
energy efficient upgrades through a popular mortgage program
known as the FHA Energy Efficient Mortgage.
There are two types of energy efficient mortgages: An EEM
Home Purchase Loan, and an EEM Streamline Refinance. Both
loans function in a similar manner and are designed to help
a homeowner save money.
The basis of the Energy Efficient Mortgage is this: reduced
monthly energy bills produced by these improvements make it
possible for homeowners to pay a slightly higher mortgage
(the cost of the upgrades added to the principle), and still
spend less money each month.
In fact, by law, an EEM is only granted when it’s proven
that it will save you money each month.
Additional Benefits of an Energy Efficient Mortgage (or
Refinance)
The FHA EEM program offers several significant benefits to
homeowners. As discussed, the first is a guaranteed savings
every month through reduced utility bills (offsetting a
slightly higher mortgage principle), and possibly
refinancing to a lower interest rates as well.
In other words, you can reduce your monthly energy costs
and potentially reduce your monthly mortgage payments
as well.
Additional benefits of an Energy efficient Mortgage include:
-
The ability to pay for energy efficient upgrades and
home improvements over the life of the loan
-
Refinancing into a fixed rate mortgage -- rates and
payments will not increase over time
-
Higher property values
-
Environmental benefit / reduced emissions and energy
usage
Energy Efficient Mortgage Requirements & Eligibility
An EEM functions just like any other FHA mortgage, except
with two additional steps. The first is a home energy rating
report from either a home energy rating system (HERS) or an
energy consultant. This report will indicate the
improvements to be made, estimates how much money you will
save each month over, and shows that the cost of
improvements is less than the present value of these
savings.
The next step, is that the amount needed for the energy
efficient improvements is simply rolled into the FHA home
loan. You do not have to qualify for, or make a down
payment, on this additional amount.
The eligibility requirements for an FHA energy efficient
mortgage are the same as any standard FHA loan. However,
only a 3% down payment is required in an FHA EEM Purchase
Loan. There is no equity required if you already have an FHA
mortgage and wish to perform an Energy Efficient Streamline
Refinance.
Finally, the energy efficient improvements are made after
the loan closes, which guarantees you'll have the funds you
need to make them.
How Do I Get Started?
Getting started is easy.
Answer a few simple questions and
we'll set you up with an energy efficient mortgage expert
who can guide you through the process.
Remember our application is fast, free, and easy, and an EEM
is only performed if it's proven to save you money!
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What Clients Say
"Wonderful...
AGAIN!"
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Obama Stimulus Plan Provides
Increased Tax Advantages for Energy Efficient
Upgrades
Under the new plan, energy efficient upgrades
are eligible for a tax credit of 30% of
qualifying costs up to $1,500. Renewable energy
systems like solar, wind, and geothermal also
may qualify for a 30% tax credit. Compared to
tax deductions which reduce taxable income, the
benefit of a tax credit is that it actually
lowers your tax bill dollar-for-dollar. |
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