EEM'S

If you are in need of a Whole House Rater to perform the EEM inspection, 1st Class HERS raters will get that done for you.

Energy Efficient Mortgage (EEM)

What is the purpose of an EEM?

• To make homes more energy efficient.
• To reduce a homes’ utility bills thus creating more disposable income for the homeowner.
• To make home ownership more affordable.

Any potential borrower of loan funds must of course first qualify, that is to say they will need to be approved for a FHA 203B or a VA loan. Once approved they automatically qualify for the EEM.

The traditional method of describing home ownership has always been PITI, energy bills were not described in the equation. Make no mistake about it, energy bills are a vital and expensive cost of home ownership. Therefore the true cost of home ownership is PITI (E), where E describes the cost of energy a home owner must pay each month.

What are the benefits to the borrower, PITI (E)?

• More comfortable and healthier environment.
• Reduced utility bills.
• Increase in the overall value of the home.

One of the greatest benefits to the EEM borrower is the opportunity to increase the energy efficiency of their home, depending on the behavior of the homeowner. An energy efficient home may offer the family a more comfortable and healthier environment. And the added energy efficiency may be seen as a hedge against future increases in utility costs. Another potential advantage is the opportunity to increase the overall value of their home. As the real estate market evolves, and energy costs rise, the value of having a more energy efficient home may be a distinct advantage in the sales transaction process.