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EEM explained

Learn how a little acronym can save money and the environment

Maybe you’re interested in buying an older home or a foreclosure property but don’t want to front the cost for improvements such as upgrading an older furnace or water heater. Or maybe you just want to reduce your carbon footprint.

Either way, the Energy Efficient Mortgage program (EEM) could be just what you’re looking for.

A simple add-on that can save you big money on your future energy bills, EEMs were created so that borrowers could finance the cost of adding energy efficient features to new or existing housing as part of an FHA- or VA-financed home purchase or refinance.

How does it work?

First find an FHA- or VA-approved community lender, such as The Legacy Group, to handle your refinance or purchase.

Next, find out what improvements your home needs with a Home Energy Rating System (HERS) report from a trained energy rater. Your lender will be able to help you find a licenced energy rater. In addition, the inspection cost can be financed as part of the loan.

HERS inspection includes:

• Current energy rating for the house
• Recommendations for cost-effective energy upgrades
• Cost estimates of the price, savings, and life of energy saving upgrades
• An estimate of the home’s rating after the upgrades
• Before and after estimates of annual energy costs for the home

Once you have a HERS inspection, your lender will help you figure out how much money you qualify for and what upgrades you want to spend the money on. After closing, you then have between 90 and 180 days to make the improvements.

Contact your Legacy loan officer for more info on an EEM that’s friendly to both your wallet and the environment.

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