Energy Efficient Mortgage

The FHA Energy Efficient Mortgage (EEM) lets you finance cost-effective energy improvements on top of an FHA loan — including a 203k — without additional qualifying income or a larger down payment.

A home energy assessment identifies improvements whose savings exceed their cost: insulation, air sealing, high-efficiency HVAC, windows and doors, and solar systems are common candidates.

EEM pairs naturally with renovation loans: buyers gut-renovating a dated home routinely stack an EEM to push efficiency upgrades further while utility savings help offset the added financing.

Best for

• Solar, insulation, and high-efficiency HVAC
• Stacking energy upgrades onto a 203k project
• Older homes with high utility costs
• Buyers focused on long-term operating savings

Program terms, limits, and eligibility are set by the insuring or guaranteeing agency and vary by lender and county. A licensed renovation lender can confirm exactly what your scenario qualifies for.