CGE - Building Performance Consulting

FHA
The FHA Energy Efficient Mortgage covers upgrades for new and existing homes and is now available in all 50 states. Key features includes:

• Loan limits may be exceeded
• No re-qualifying
• No additional down payment
• No new appraisal
• $4,000 or 5% of the property value (up to $8,000) may be financed

203(k) FHA Home Rehabilitation Loans
The FHA 203(k) program enables a home buyer or investor to obtain a single loan to finance both property acquisition and complete major improvements after the time of loan closing. Can be used in conjunction with the FHA EEM. Key features include:

• Loan limits may be exceeded
• Total cost of improvements must exceed $5,000

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VA
The VA Energy Efficient Mortgage is available to qualified military personnel, reservists and veterans in all 50 states for energy improvements when purchasing an existing home. Key features include:

• $3,000 of upgrades may be financed based solely on documented costs
• Up to $6,000 may be financed if upgrades are deemed cost effective

Fannie Mae and Freddie Mac
Fannie Mae secondary market guidelines permit approved lenders to increase ratio s two percent on the debt-to-income requirements for Energy Efficient Mortgages. An expanded qualifying ratio helps purchasers who are "maxed-out" on their income ratios. Freddie Mac allows a lender to use the projected utility savings as a "compensating factor."

EEMs/EIMs require a Home Energy Rating (HERS) Report. This report provides an evaluation of the energy savings for a particular house design and the cost of the energy saved. CGE is a certified HERS Provider, and can assist you in obtaining a HERS Report. el.

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Energy Efficient Mortgage Helpful Links

Fannie Mae
HUD
Consumer Information Center: Energy Efficient Mortgage Home Owner Guide
Energy Rated Homes of America
RESNET
Energy Star

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