Did you know it's possible to get an Energy Efficient Mortgage?

Energy Efficient Mortgage (EEM) is one of many FHA programs that insure mortgage loans. The mortgages are actually made by many banks, savings and loan associations, and mortgage companies, and the loans are covered by EEM insurance through FHA.

The idea behind the EEM program is to help achieve national energy-efficiency goals and reduce pollution as well as to provide better housing for people who might not otherwise be able to afford it.

The program considers the anticipated savings on monthly utility bills when a buyer purchases an energy-efficient home.

For example, let’s say the utilities in an older home you are considering will cost $200 a month and you qualify for a mortgage payment of $700/month but if you buy a certified energy-efficient home instead, the utility expense will be only $100/month. Now you can qualify for an $800 monthly mortgage payment.

This is a very simplified explanation but I hope it’s sufficient to give some serious consideration to an EEM.

Other provisions of the program are geared to adding energy efficient improvements to an existing home – one you already own or one you are considering buying.

Click on the links below for more details and technical information, such as maximum amounts, who qualifies, and how to get an EEM:

http://www.arkansasbusiness.com/article.aspx?aID=104162.19830.116304&view=all
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
http://www.huduser.org/periodicals/ResearchWorks/ResearchWorks_Mar06.pdf
http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm