Pennsylvania Energy Efficient EEM Mortgages
Do you want to finance energy improvements in your mortgage?
Your maximum loan amount is increased!
The maximum amount of the energy package that can be added to the Base Loan Amount is the lesser of:
• the dollar amount of a cost-effective energy package as determined by the home energy audit; or
• the lesser of 5 percent of:
- the Adjusted Value; or
- 115 percent of the median area price of a Single Family dwelling;
The EEM is an FHA program. You only need a 580 credit score with us. You can finance installation of:
- Wind and/or solar installation
- Weatherization items up to $3,500 to pay for basic weatherization items, such as thermostats and insulation regardless of limits below.
- Other energy related imporvements
Your maximum debt ratio is increased by 2% because of the money you will save on utility bills!
The borrower is not required to be qualified on the total loan amount with the portion of loan used to finance energy efficient improvements.
Weatherization improvements may be used on:
- existing properties (one- to four-units)
- condominiums (one unit)
- manufactured Housing (single unit)
Eligible energy-related weatherization items include:
- air sealing (including weather-stripping doors, caulking window and plumbing penetrations)
- insulation (attic, floors, walls, basement)
- duct sealing and insulation
- smart thermostats and equipment controls
- windows and doors
- low flow water fixtures
- carbon monoxide monitors and other combustion appliance safety measures
The maximum allowable cost (not to exceed actual cost) that can be financed is:
- $2,000 without a separate value determination;
- $3,500 if supported by a value determination made by an approved FHA Roster appraiser or Direct Endorsement (DE) underwriter; or
- no limit if:
- supported by a value determination made by an approved appraiser or underwriter; and
- a separate on-site inspection is made by an FHA-approved fee inspector or DE staff appraiser.
Installation of weather improvements must be completed within:
- 30 Days of Disbursement; or
- 90 Days of Disbursement if the improvements are part of an energy package for an EEM.
- Installations of solar and wind energy systems must be completed within 120 Days of the mortgage Disbursement.