Quantcast

The Energy Efficient Mortgage Loan program helps current or potential homeowners significantly lower their monthly utility bills. Energy efficient improvement costs can be incorporated into an FHA loan.

FHA Rates Near 50 Year Low!

Now is the time to drop the interest rate on your 30-year mortgage or refinance into a 15-year home loan.

FHA Rates for October 22, 2021
Are You Watching Your Credit Score?

NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.


- Improving Your Credit Score Has Never Been More Important -

Get started one
Get started two
Get started three
Get started four
FHA.com is a privately owned website, is not a government agency, and does not make loans.

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

Energy Efficient FHA Loans

Incorporate Improvements Into Your Loan

Energy Efficient FHA Loans

The Energy Efficient Mortgage Loan program helps current or potential homeowners significantly lower their monthly utility bills by enabling them to incorporate the cost of adding energy efficient improvements into their new home or existing housing. This FHA program eliminates the need for homeowners who are interested in making their home more energy efficient to take out an additional mortgage loan to cover the cost of the improvements they intend to make to their property. The program is available as part of a FHA insured home purchase or by refinancing your current mortgage loan.

It is our government's goal to make energy efficiency and conservation a way of life. The FHA Energy Efficient Mortgage Loan program contributes to these efforts by providing better housing and creating a way for homeowners to make valuable improvements to their homes at a relatively low cost. The Joint Center for Housing Studies has reported that by considering the amount of monthly savings on utility bills when determining the amount of the mortgage, over 250 thousand more homeowners could feasibly qualify for a home loan.

HOW IT WORKS

Through this and other types of mortgage insurance programs, the lender helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.

AVAILABLE ASSISTANCE

The Energy Efficient Mortgage Loan program is one of many FHA programs that insures mortgage loans. Borrowers who qualify for FHA's popular Section 203(b) fixed-rate mortgage loan may finance up to 96.5 percent of their home loan. They are also able to fold their closing costs and the up-front mortgage insurance premium into the total cost of the loan. Energy Efficient Mortgages can also be used with FHA Section 203(k) rehabilitation program; in this case the Energy Efficient Mortgage generally follows the Section 203(k) rehabilitation program's financing guidelines.

ELIGIBILITY

The Energy Efficient Mortgage Loan program is available to anyone who meets the income requirements for FHA's Section 203(b) and is able to make the monthly mortgage payments. The cost involved in adding energy efficient features to the home and an estimate of the energy savings must be determined by a home energy rating system or a qualified energy consultant. Up to $200 of the cost of the energy inspection report may be included in the mortgage. Cooperative units are not eligible. Individual condominium units may be insured if they are not in projects that have been approved by FHA or the Department of Veterans Affairs, or they meet certain Fannie Mae guidelines.

ELIGIBLE ENERGY EFFICIENT ACTIVITIES

Energy Efficient Mortgages can be used to make energy-efficient improvements in one- or two-unit existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. The cost of the improvements that may be eligible for financing as part of the mortgage is the lesser of 5 percent of the property's value, 115% of the median area price of a single family dwelling or 150% of the conforming Freddie Mac Limit. View the current FHA loan limits.

FHA Loan Programs

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


GET STARTED

FHA Loan Articles and Mortgage News

Considerations When You Want to Refinance

October 14, 2021 - Make the most informed decision about your refinance options as you can considering both. You can negotiate a better rate, monthly payment, or take cash out on the transaction if you choose your loan carefully and do so with an eye on your financial goals.

FHA and HUD Announce Disaster Relief for FHA Borrowers In Vermont

October 13, 2021 - The FHA and HUD have announced foreclosure relief measures and other disaster recovery options for those affected by flooding and storms in parts of Vermont during the summer of 2021. HUD extended an automatic 90-day foreclosure moratorium for Windham and Bennington counties.

Ways to Improve Your Credit Ahead of Your Home Loan

October 9, 2021 - If you need a home loan, you’re likely planning and saving in advance of your application--applying for a home loan means putting money aside for a down payment, saving for closing costs, and working on your credit and debt ratio in the meantime.

FHA and HUD Announce New COVID Relief Measures

October 8, 2021 - During the pandemic, the Department of Housing and Urban Development announced a variety of COVID-19 relief measures for those with FHA mortgages. This comes as new relief for borrowers recently or newly struggling to make their mortgage payments because of the pandemic.

Four FHA Home Loan Tips for Buying a Condo

October 6, 2021 - Are you interested in buying a condo unit with an FHA home loan? It’s an option some borrowers don’t realize they have--some make assumptions about the FHA home loan program and the availability of loans for condo units.