EEM Process

Energy Efficient Mortgage Process in Phoenix

  Borrower selects existing home to purchase or improves current home.

  Borrower contracts with a Certified Energy Rater to complete a HERS report. 

  Rater prepares an energy efficient report that recommends cost effective measures.  They compute the estimated monthly "energy savings".

 Borrower selects the improvements to install and determines with the lender the final loan amount.

Increases home’s appraisal
– For new construction:appraised value of property plus present value of efficiency improvements
– For retrofits: as-is value plus cost of improvements

  Borrower can finance up to 100% of the energy improvements.
-Improvements get financed over the life of the loan
-Fannie Mae will finance up to 15% of value of home and FHA will do up to 5% of value of home

  Loan Closes with additional funds for energy improvements going into an escrow holdback account.

 Once installed,  contractor paid from escrow.  Any remaining funds will be applied as a principal reduction.

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