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Rob Rochlin

WHAT IS AN ENERGY EFFICIENT MORTGAGE (EEM)?

To help the borrowers save money in the future, the Energy Efficient Mortgage or the EEM was developed. Borrowers save money by financing the cost of adding energy-efficiency features to a new or existing home purchase. Either the 203 (b) or the 203(k) loans can use the EEM. Guidelines governing the EEM also exist; the cost of improvements must be certified by a Home Energy Rating System or by an energy consultant. Also, the cost of the improvement must be less than that of the anticipated savings from the improvements. Only single family homes or duplexes are eligible for EEM. However, condos are not eligible for the loan. Finally, the loan guidelines call for the improvements financed to be 5% of property value or $4,000, whichever is greater. It must fall within the FHA limit. For more details regarding this loan program consult your Tampa Realtor.

Published Monday, January 09, 2012 3:39 PM by Rob Rochlin

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