1. Energy Efficient Mortgages
LenderSelect Mortgage Group
Energy Efficient Mortgages

2. Product Description
Homeowners with lower utility bills have more money in their pocket each month. Whether buying, selling, refinancing, or remodeling, borrowers can increase their comfort and actually save money by using the Energy Efficient Mortgage (EEM).
An Energy Efficient Mortgage (EEM) allows the borrower to add qualifying energy improvements to their loan amount (Primary residence only).
Can be combined with all FHA and VA programs (including FHA 203(k) loans).

3. Energy Efficient Mortgages (EEMs)
Energy efficient appliances such as refrigerators, dishwashers, etc. cannot be included in this program.
New roofs cannot be included in this program.
These improvements can be combined with all FHA and VA programs.
including 203(k) loans (full and streamline)
including FHA and VA streamline refinances (with or without an appraisal)
These improvements cannot be combined with Conventional programs.

4. Acceptable Energy Improvements
Solar heating systems
including solar systems for heating water for domestic use
Solar heating and cooling systems
Caulking and weather-stripping
Programmable thermostats
New or additional ceiling, attic, wall and floor insulation
Water heater and/or water heater insulation
Storm windows and/or doors
including thermal windows and/or doors
Heat pumps and vapor barriers
Energy Star products (excluding appliances)

5. Acceptable Energy Improvements
Furnace efficiency modifications limited to replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency
Devices for modifying flue openings which will increase the efficiency of the heating system
Electrical or mechanical furnace ignition systems which replace standing gas pilot lights

6. FHA Financing
The amount that can be financed is determined by the lesser of:
5% of the appraised value or
115% of the median area price of your area (your county limits) or
150% of the Freddie Mac limits (1-unit $417,000, 2-unit $533,850)
A Home Energy Rating System (HERS) report will be required.
The HERS report determines if the proposed work will be cost effective.
The HERS inspector will complete a worksheet to determine the maximum amount the borrower can finance.
Approx. $500
Can be rolled into loan
Copy of the contractor bid is required
Funds escrowed at closing; work must be done within days.
Final inspection fee collected at closing.
Funds will be disbursed to the borrower and the contractor upon completion of work.

7. Weatherization – available only on FHA loans
Weatherization protects a structure from the elements, while reducing energy consumption and optimizing energy efficiency.
Caulking and weather-stripping
Thermostats
Storm windows/doors
Weatherization items through FHA can be done without a HERS report.
Maximum amount:
$2,000 (without any value determination)
up to $3,500 (with an appraised value to support the improvements)
over $3,500 (with an appraisal and a compliance inspection)
Copy of the contractor bid is required
Funds escrowed at closing; work must be done within days.
Final inspection fee collected at closing.
Funds will be disbursed to the borrower and the contractor upon completion of work.

8. VA Financing
Eligible up to $3,000 of the loan amount without any separate calculations.
For values between $3,001 - $6,000
Energy Star stickers are required to determine the cost savings (per VA guidelines)
Copy of the contractor bid is required
Funds escrowed at closing; work must be done within days.
Final inspection fee collected at closing.
Funds will be disbursed to the borrower and the contractor upon completion of work.

9. Additional Things to Know
Eligible up to $3,000 of the loan amount without any separate calculations.
For values between $3,001 - $6,000
Energy Star stickers are required to determine the cost savings (per VA guidelines)
Copy of the contractor bid is required
Funds escrowed at closing; work must be done within days.
Final inspection fee collected at closing.
Funds will be disbursed to the borrower and the contractor upon completion of work.

10. Benefits of the EEM Buyers: Sellers: Remodelers/Refinancers:
Get a more comfortable home NOW.
Save money every month by lowering energy bills.
Increase the potential resale value of your home.
Sellers:
Sell your home more quickly.
Make your house affordable to more people.
Attract attention in a competitive market.
Remodelers/Refinancers:
Get all the EEM benefits without moving.
Make improvements which will actually save you money.

11. you and your borrowers with Energy Efficient Mortgages?
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you and your borrowers with
Energy Efficient Mortgages?