Saving money is a great thing in any economy, right? Don't you like to know about the little secrets of cutting corners? How would you like to save over $500 a month just because you improved your home with energy-efficient ideas.
Are you part of the GREEN family now, because not only did you save money, improve your home, but because you are helping the environment? And did you know that this can be done without spending as little money out of pocket as possible.
HUD states that Congress started a pilot program in 1992 demonstrating the use of energy efficient mortgages, known as EEMs. (Energy Efficient Mortgages) FHA has adopted this into their financing options which allows a borrower to :
save money monthly
incorporate the improvement costs into the mortgage
these improvements are installed after the loan closes
this program allows you to use normal FHA guidelines
To get a better understanding of what you could qualify for, please read Energy Efficient Mortgages. (this opens in another window) You might just improve your home, your life, and save more money.
Marlene.... in reality, this type of financing has been around even in the 80's, but 1992 was when Congress approved this with HUD for the FHA insured loans. Thanks for the compliments.
Tom W. ..... it's great when you can say that you learned something new today. It can make that day seem so much better. Thanks for stopping by.
Jeff D. ..... I think it's a great reminder because you hardly ever hear about this type of loan. If I can remember correctly, there were only 26,000 of these loans done in 2003. Maybe 24,000 in 2002.
J.R. ...... well, thank you very much for those kind words. I truly appreciate that and thanks for stopping by.
We work with an entity here in Pa that offers Energy Efficient Loans as well. It's great to spread the word about these products though, as they don't seem to get as much air-play and attention as they should. Thanks Jeff!
Jeff, this is a great post! There are more and more homeowners and buyers looking to take advantage of the benefits of being Green. You did a great job explaining the FHA mortgage side of this.
Fran.... not too many know of this program. In all honesty, it's just a little more information to know about that so many loan officers either aren't told or don't want to learn more. They stick with what they know and sell that.
Jason.... have you ever done one? Just curious.... as stated, you can do this with conventional, FHA, and VA. And you are right, they don't get mentioned that often.
Leah..... just wondering how many homes could have been more energy efficient. Thanks for those kind words.
Bill and I did a radio show about EEMs over a year ago - we joined EnergyStar as a result. America seems slow to embrace these loans. Public awareness is low, low, low.
Mary.... only 14 tasks? lol In any case thanks for the compliments on this. In regards to my other site, I need to add more to it, spruce it up some. thanks
John..... it's a great program to market. One reason why many don't is because there are a few extra steps on the loan officers part and because it would take about another 15 to 30 minutes to explain on how this works and can help. How many sales people have been told to sell and move onto the next one? hhhhmmmm too many, hence why so many people have been placed in mortgages otherwise shouldn't have been placed.
Olan...... thank you very much for the polite comments and for stopping by.
Art..... I agree about public awareness. And read my comment to John. In my opinion, this is the main reason why. It's up to the lenders and loan officers.
When you did the radio show, did you get many call ins? Did you do any loans because of this?
I was recently told this is a dead program. If there are lenders in my area that I can direct my clients to so they can take advantage of this program, please let me know. I perform energy audits. The purpose of these is to improve the home through low interest loans. I talked to a few mortgage brokers up here and they hadn't even heard of EEMs. Any help would be appreciated.
You know, this is such interesting information. Thanks for sharing it. I hopped on over to the link you gave us, and now have much more to contemplate. I am waiting for the day when EEMs become the norm. . .
Jeff, it is unfortunate that there doesn't seem to be much driving these. You getting the word out will help.
What do you think are the reasons for the low rate of use and what can be done about it by the mortgage professional and Realtors in particular. (Do the investors who buy the loans play a part? positive? negative?)
At what stage in the process can it come into play? (Prior to application?) (At any stage where the need can be identified (after home inspection)??)
How does using it affect mortgage pricing?
James (above) mentioned that he does energy audits. Maybe he could expand a little on how he gets involved in the process and who gets him involved.
Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages Cherry Hill, NJ More about me…
Infinity Home Mortgage Company, Inc
Office Phone: (888) 835-1663
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I just want to educate people about mortgages and the process.
In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.
Jeff - Another great post. Even though these loans have been around since '92, they are not well-known. Glad you are spreading the word! Great job.