Facts about Energy Efficient Mortgage (FHA)

In case you come across a home need some energy efficient upgrades and need
to finance the repairs consider an Energy Efficient FHA mortgage

This was passed to me by a mortgage rep.

The Energy Efficient Mortgage (EEM) allows FHA borrowers the opportunity to
finance costly and valuable energy conservation improvements with their
home loan.

* Add up to 5% of the appraised value to the loan for home energy
efficiency improvements and upgrades
* No additional income-qualifying (does not affect qualifying ratios,
down payment or appraisal)
* 100% financed (loan to value does not apply)
* Never holds up closing (all work done after close)
* Great opportunity for client: any increase in monthly mortgage
payment more than offset by corresponding decrease in utility bills (as much
as 30% -50%)
* Increase potential resale value of home
* Program recommended and supported by U.S. Department of Energy and
Energy Star
* VA Financing has a similar program available, but the maximum amount
financed is $6,000, regardless of property value

Typical EEM - Qualifying Energy Improvements Include:

* Replacing / converting outdated furnace and air conditioning units
to modern, energy efficient central systems
* Installing vinyl-frame dual pane windows
* Upgrading or installing attic and wall insulation
* Upgrading water heater
* Weatherizing doors, windows, walls and pipe penetrations



Sunil Sethi / Broker, President, REALTOR, MBA, CPA (inactive)
38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536
<http://www.sunilsethi.com/> www.sunilsethi.com

CA DRE#: 01173766