What is an EEM?

EEM stands for Energy Efficient Mortgage. It is simply a loan which recognizes that when you make energy efficient upgrades to your home, these upgrades not only improve the value of your house but also save you money each month on your bills.

Whether you are purchasing a new home or refinancing an existing home, the Energy Efficient Mortgage allows you to borrow additional money, above the amount you have qualified for, to enable you to finance the cost of upgrading the energy efficiency of your home.

Because energy efficient upgrades save you money.

Each month you will have more money in your pocket as your energy bills will be lower. You will save more than you have to repay. If you have more money each month it makes it a safer loan for your lender.

In the mortgage industry the FHA Energy Efficient Mortgage is the most widely recognized green mortgage. There is also a VA Energy Efficient Mortgage.

For more information on the FHA and VA Energy Efficient Mortgages follow this link.

The FHA Energy Efficient Mortgage can also be combined with other FHA loans, such as the 203k redevelopment loan , which is valuable if you are looking to take a run down property and make major renovations.

The next question is what upgrades can you make that qualify as both energy efficient and cost effective?

The way to answer this is with a HERS Report from a qualified HERS Rater.

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