Search Benefits

Energy Efficient Mortgage Insurance Benefits

Program Description

This program helps homebuyers or homeowners save money on utility bills by helping them get loans to cover the cost of adding energy saving features to new or existing housing as part of a Federal Housing Administration insured home purchase or refinancing mortgage.

The Federal Housing Administration's (FHA) Energy Efficient Mortgage (EEM) program recognizes that lower utility costs can help a homeowner pay a higher mortgage to cover the cost of energy improvements. Under the program, persons may add the cost of energy-efficient improvements to their loan amount.

General Program Requirements

The borrower must qualify for the portion of the loan used to purchase or refinance a home. Borrowers are not required to qualify on the portion of the loan used for making energy-efficient upgrades. All FHA-approved lenders are eligible to offer EEM to persons who are purchasing or refinancing with an FHA-insured mortgage.

Borrowers must qualify for a home purchase or refinance under FHA's minimum credit requirements. The energy-efficient improvements must be cost-effective, meaning that the total cost of the improvements must be less than the energy saved over the expected life of the improvements.

An estimate of energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed with the cost-effective energy-efficient improvements.

Your Next Steps

The following information will lead you to the next steps to apply for this program.

Application Process

To obtain an FHA insured mortgage, contact an FHA-approved lender who is participating in this program:
http://www.hud.gov/ll/code/llslcrit.cfm

Program Contact Information

To contact a U.S. Department of Housing and Urban Development (HUD) Housing Counseling agency, go to:
http://www.hud.gov/counseling/
To contact the Federal Housing Administration (FHA), please use one of the following methods:

Visit us at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing...

Write us at:
U.S. Department of Housing and Urban Development
Federal Housing Administration
451 Seventh St., SW
Washington, D.C. 20410

Call us at:
1-800-CALL-FHA (1-800-225-5342) or via Federal Information Relay Service (w/TTY): 1-800-877-8339

Email us at:
answers@hud.gov