Is the Citimortgage EEM or Energy Effcient Mortgage available....From our local Socal Citimortgage Account Representatives the EEM program is available, and I will post additional specifics as I learn them.
FHA/VA have the EEM - FHA is now limited to $8000 and VA $6000. Citimortgage might go much higher, and with the new bill passed this week, FHA EEM may go to 5% of value with no cap...so $300,000 loan $15,000 in energy efficient improvements that can get many houses saving 40-50% of their utility bills, and that is right now.
Last year about 3 of these eems were done in CA, this year so far about 120 so its ramping up. The best part of the EEM to me is for new homebuyers who have never hired a contractor and don't quite know where to start with energy effciency, but want to do it, Realtors and Loan Officers can suggest the EEM to their clients, so you go into escrow, a HERS Energy Audit is done that gives a list of cost effective energy efficient improvements, the processor gets contractor bids...the loan is closed, new homeowner moves in, and money goes into an escrow account. Contractors do their work, Rater comes back makes sure work is done, contractors get paid and all the moneys roll into one 1st mortgage at low low 1st mortgage rates. No more HELOCS, no more buy a house and get cash out, so for many people this is the only way to get their houses energy efficient.
You have happy clients caurs you suggested this to them. AAAAAAAAND. everyone getting an FHA loan signs an FHA Energy Effcient Loan Disclosure. So instead of saying we don't know what that is..what about suggesting it to our clients. Aaaaaand about 50% of clients find out on their own about EEMs and go out searching for a lender who will do them. So if we are advertising that we do it...Maybe these buyers will fund us and we can do their loans. Whudya think?? We are set up to help people do these loans in Southern California if anyone needs processing/project management for EEMs Check me out at www.eemprocessing.com. I will post info no the Citimortgage EEM as I get it.
;)
Links;)
Archives
HI Joel,
From the CITI people I have talked to this is only being offered on the retail side...maybe that has changed? I hope so!
When checking out the FHA EEM's be sure and check the max loan limit in the 4155. Last time I read it was only 160K and change...I was caught in that trap last year and couldn't make it work - althought the loan limits were higher the EEM is capped per 4155 lower than the limits.
Good for you for pursuing this! The more LO's and brokers that jump on board and are looking for it the more the lenders will respond!