Energy Efficient Mortgages
An Energy Efficient Mortgage (EEM) is an FHA or VA loan that allows borrowers to finance 100% of energy efficiency improvements. This loan is available for purchase or refinance of one-to-four unit owner-occupied properties. Energy Efficient improvements may include, windows, doors, insulation, HVAC systems, and Energy Star related appliances.
To get an EEM a borrower typically has to have a home energy rater conduct a home energy rating before financing is approved. This rating verifies for the lender that the home is energy-efficient.