EEM: The future of home buying
Why use an EEM?
Next to a mortgage payment, the single largest expense of home ownership is utility costs. The Energy Efficient Mortgage program recognizes that if energy efficiency improvements are made at the time of purchase, utility bills will go down, and the overall monthly costs of ownership will be less. Because of this, EEMs allow borrowers to finance the cost of these improvements into a single mortgage.
With record low mortgage rates and swiftly rising utility costs, now is the time to act. If your real estate agent and lender have not presented you with an EEM as a financing option, they are doing you a huge disservice. Even if the home that you are purchasing or refinancing is relatively new, an EEM offers the chance to make your home more comfortable, more valuable, and improve the air quality, all while saving money every month!
EEMs can also be used by Builders to offset low appraisals that don’t give full value to energy efficient upgrades.
Why use an EEM Partner?
An EEM Partner is part of a team of professionals that have been trained to understand their respective roles in the process and implementation of Energy Efficient Mortgages and are actively promoting them. An EEM Partner Team is comprised of a Lender, Real Estate Agent, HERS Rater, and Contractor(s).
Working together, an EEM Partner Team will make sure that a borrower is well taken care of from start to finish. They will provide accurate and consistent information and practices that help streamline the process. Too often in the past, EEMs held up closing dates and confused underwriting; the HERS reports took too long to produce and often included improvements that did not qualify or that weren’t cost effective. By choosing an EEM Partner, borrowers can be confident that the loan will not be held up due to the EEM. Underwriters will have everything they need and the improvement packages will work within the requirements.
The FHA EEM requires that a HERS (Home Energy Rating System) Rater performs diagnostic testing of the home and produces a HERS Rating. The EEM HERS Rater Partners are specifically trained to maximize the benefits for the borrower. They will guide you through the steps involved and present you with options that are best for your particular situation. Your EEM HERS Rater Partner has your best interests in mind and will work as your representative.