8-5-2014: An EEM may allow borrowers to borrow slightly more than their debt-to-income ratio might otherwise allow if the difference is used toward buying a better, more energy-efficient home. The allowance uses estimated savings in a formula that increases the amount of money a home buyer can qualify to borrow, often about 5% of the purchase price. Try An Energy Efficient Loan?
FHA’s Energy Efficient Mortgage (EEM) is designed to help home buyers or home owners save money on utility bills by allowing them to finance the cost of adding energy efficiency features to exiting or improved housing as part of their FHA insured home purchase or refinancing mortgage. EEMs rely on a type of home energy audit that uses the Home Energy Ratings System tool (HERS). Lenders and homeowners can find auditors who are trained to use the HERS tool.
Energy Raters and Auditors are professionals trained and certified in energy efficiency, combustion safety and building analysis.
EEM Notice For FHA Partners:
FHA’s Energy Efficient Mortgage (EEM) relies on a type of home energy audit that uses the Home Energy Ratings System tool (HERS). Lenders and homeowners can find auditors who are trained to use the HERS tool from the following web page: http://www.resnet.us/trade/find-raters-auditors Some states provide rebates that are tied to certain audit/auditor requirements, which may be different from FHA’s requirements. Requirements set by rebate providers do not replace FHA’s EEM requirement for a HERS audit that is conducted by a qualified home energy rater. Please check the information from rebate providers for their specific rebate requirements.
Be sure to visit FHA’s EEM Home page for more information about its EEM program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemhome The EEM Home page provides number of resources, including: a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and a Cross Reference Tips sheet, which consolidates many of the EEM rules by category.
For technical support on Energy Efficient Mortgages, or any other FHA program, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: firstname.lastname@example.org
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