FHA’s EEM is a great program, and I don’t have a lot of folks that do it, but it’s great if you want to save on your utilities. The FHA EEM program is basically allowing you to finance energy efficient home improvements into your home loan.
Essentially, you can finance the cost of those energy efficient improvements without having to further qualify. FHA justifies the higher payment because you are saving money on your utilities. You can still get your loan into a 15 or 30 year fixed without a hitch. Just keep in mind that the same rules for getting approved will still apply to you. So, you will still need decent credit and good job history along with the proper documentation. You will still need the 3.5 % down as well if you are buying a new home.
The total amount of your loan is the home value in addition to the projected cost of the energy efficient improvements. According to FHA’s EEM program guidelines, your mortgage can exceed the maximum limit FHA allows, just by the amount of the energy efficient improvements. This is not so bad, but let’s you know that FHA still plans to keep an eye on what they are lending on because they are insuring this loan.
For more information on how FHA’s EEM program works, you can visit, www.fhaloansnow.net.
-Mayer Dallal
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