Nowadays, new home buyers look for energy efficient homes when shortlisting their homes. Good news for potential buyers that are looking for energy efficient homes! The government is providing assistance to potential home buyers that opt for energy efficient homes.
The Energy Efficient Mortgage Loan program is an FHA insured mortgage loan that helps current or potential homeowners significantly lower their monthly utility bills by enabling them to incorporate the cost of adding energy efficient improvements into their new home or existing housing. (Source: www.fha.com)
It is also used to purchase an energy-efficient new home or to purchase or rehab an existing home in need of energy improvements. If the borrower is purchasing a new home, the home must be rated by a qualified energy "rater" to qualify for the loan.
Typically, the loan is increased by 5% of the purchase price if a borrower applies for the EEM loan.
The borrower must meet FHA's Section 203(b) income requirements and can make the monthly mortgage payments for him/her to qualify for the EEM loan. Maximum amount of $200 - inspection report cost, may be included in the mortgage.
Energy efficient home not only saves you money but it is also good for the environment in the long run. If you have any questions, don't hesitate to contact me.