Energy Efficient Mortgages
What is the purpose of this program?
Provides mortgage insurance for a person to purchase or refinance a principal residence
and incorporate the cost of energy efficient improvements into the mortgage. The mortgage
loan is funded by a lending institution, such as a
mortgage company, bank, savings and loan association and the mortgage is insured by HUD.
What are the eligibility requirements?
Borrowers are eligible for approximately 97% financing. Borrowers are able to finance
closing costs and the up front mortgage insurance premium into the mortgage. Borrowers are
also responsible for paying an annual premium Eligible properties are one to two
existing units and new construction.
The cost of the energy efficient improvements that may be eligible for financing into the
mortgage is the greater of 5% percent of the property's value (not to exceed $8,000) or
$4,000. To be eligible for inclusion in the mortgage, the energy efficient improvements
must be cost effective, meaning that the total cost of the improvements is less than the
total present value of the energy saved over the useful life of the energy improvement.
The cost of the energy improvements and estimate of the energy savings must be determined
by a home energy rating system (HERS) or energy consultant. Up to $200 of the cost of the
energy inspection report may be included in the mortgage. |
FHA Loans
FHA Mortgage Insurance
FHA Streamline Refinance
Down Payment Gifts
Bridal Registry Account
Bankruptcy and Foreclosure
Refunds Ready on FHA Loans
Single Family Home Program
Single Family Rehab Program
Title I Improvement Loan
Energy Efficient Mortgages
Reverse Mortgage Program |
