FHA Energy Efficient Mortgage (EEM)

FHA is gaining in popularity again. After several years taking a back seat to sub-prime mortgages, FHA loans are one of the best mortgage solutions for homebuyers. And, you don't need to be a first time homebuyer to utilize an FHA loan. You can only have one FHA loan at a time.

Energy Efficient Mortgage (EEM)

The FHA Energy Efficient Mortgage is focused on allowing current or potential homeowners 'go green' by investing in energy saving updates to their home. In a nutshell, EEM:

• May be used with other FHA Mortgages
• No special underwriting or appraisal requirements
• May finance 100% of the energy improvement
• Allows $4,000 or 5% of property value not to exceed $8,000

Similar to the FHA Section 203(k) rehabilitation program, the EEM Mortgage allows upgrades to the home to be rolled into the purchase of a new or existing home. The improvements can be included in the borrower's mortgage only if their total cost is less than the total dollar value that will be saved during their useful life.

The monthly savings on utility bills is considered when determining the amount of mortgage allowed.

Jeff, Neighborly Realty (http://www.englepropertiesonline.com/)