Gentry Real Estate



Energy Efficient Mortgage

Energy Star“Energy Efficient Mortgages,” also known as EEMs, make it easier for borrowers to qualify for loans to purchase homes with specific energy-efficiency improvements. Lenders can offer conventional EEMs, FHA EEMs, or VA EEMs.

Conventional Energy Efficient Mortgages

Conventional EEMs can be offered by lenders who sell their loans to Fannie Mae and Freddie Mac. Conventional EEMs increase the purchasing power of buying an energy efficient home by allowing the lender to increase the borrower’s income by a dollar amount equal to the estimated energy savings. The Fannie Mae loan also adjusts the value of the home to reflect the value of the energy efficiency measures.

FHA Energy Efficient Mortgages

FHA EEMs allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already approved mortgage loan (as long as the additional costs do not exceed $4000 or 5 percent of the value of the home, up to a maximum of $8000, whichever is greater). No additional down payment is required, and the FHA loan limits won’t interfere with the process of obtaining the EEM.

more in a printable fact sheet

more from the Energy Star Website

Indigo Financial Group

Conventional Energy Efficient Mortgages (EEM)

The conventional (or Fannie Mae) Energy Efficient Mortgage is the most powerful of the three EEM programs specifically designed to make existing homes more comfortable and affordable. This mortgage is perfect if you are buying or refinancing a home and you are thinking about renovating or updating it as you do so. It also enables you to do ANY energy efficient upgrades without touching the equity or the down-payment on your home.

more in a printable fact sheet

more at the Indigo Website


The Los Angeles Times reported March 6, 2007 that Bank of America, the nation's largest retail bank unveiled a $20 billion investment fund over the next decade to promote energy efficiency and address global climate change. The fund would include lower interest mortgages to consumers who purchase energy efficient homes. The paper stated that the investment as "what could be the largest environmental friendly corporate project in history." The aim of the plan is to promote energy efficiency and deploy new technologies to reduce the emissions of greenhouse gases that contribute to global climate change. The paper quoted James Mahoney, Bank of America's public policy director as saying, "the program reaches across the company. The largest piece commits $18 billion to corporate efforts for the financing of green buildings and energy efficient technologies, assisting companies in trading carbon emission credits and providing financial and advisory services to businesses developing environmental friendly products." Joel Makower of commented on Bank of America announcement, "The green economy is a business space of immeasurable proportions. Bank of America is acknowledging that they want their share."