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The best part of the FHA's Energy Efficient Mortgage is that the borrower isn't required to qualify for the extra money needed to include the energy upgrades, and there is no down payment required for the extra amount.

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 April 10, 2020
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FHA.com is a privately owned website, is not a government agency, and does not make loans.

What About FHA Loan Guidelines? (part two)

FHA Common Question #26

In addition to the other types of FHA loan guidelines that pertain to specific types of purchases such as a fixer-upper home or a mobile home, there is also a special kind of FHA guideline pertaining to loans for energy efficient homes. This kind of FHA loan is called the Energy Efficient Mortgage, also known as EEM. It provides mortgage insurance for the borrower to buy or refinance a residence and include the cost of energy-saving upgrades in the amount.

The best part of the FHA's Energy Efficient Mortgage is that the borrower isn't required to qualify for the extra money needed to include the energy upgrades, and there is no down payment required for the extra amount. The rationale behind this kind of FHA loan is that by saving money on utilities, the borrower can afford to make higher payments, or get a larger loan based on those savings. Anyone concerned about the environment, saving money or just getting the most efficient home they can afford should seriously consider the EEM.

While the FHA has these programs, most FHA lenders either choose not to participate in them or have additional qualifying overlays which are more stringent than the FHA. It is not mandatory for an FHA lender to offer certain products and you should contact each lender to see if they offer the product you need.

NEXT:  How Do I Get an Energy Efficient Mortgage?

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FHA Loan Articles and Mortgage News

HUD Announces New CARES Act FHA Home Loan Relief

April 2, 2020 - If you have an FHA mortgage, refinance loan, or One-Time Close construction mortgage and are experiencing financial hardship as a result of the COVID-19 outbreak, you may qualify for certain relief measures including those announced in this latest HUD action. What kind of relief may be available to you?

FHA Loan Advice From HUD During the Coronavirus Outbreak

April 1, 2020 - FHA lenders have been asked by the Department of Housing and Urban Development to use reasonable judgment when trying to decide who is legitimately affected by COVID-19 for the purpose of evaluating the loan.

FHA Announces Coronavirus-Related Changes to Loan Approval Rules

March 30, 2020 - Recently the FHA and HUD issued a mortgagee letter announcing that appraisal rules had been temporarily modified to permit exterior-only appraisals for FHA home loans and reverse mortgages.

FHA and HUD Announce Modified Appraisal Guidelines

March 27, 2020 - The COVID-19 / coronavirus outbreak has put considerable stress on many sectors of the housing industry. At the end of March the FHA and HUD issued a press release to announce changes in FHA appraisal policy to accommodate some of that stress

Getting a Loan in the Age of Coronavirus

March 24, 2020 - Mortgage markets, interest rates, and related issues are getting a lot of attention lately. Buying a home is more complicated in the era of the coronavirus, lockdowns, and COVID-19. But what are industry people saying about mortgage loans right now?