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VA Energy Efficient Mortgages (EEM)
The VA Energy Efficient Mortgage, while not as powerful as the conventional EEM, still accomplishes the same things while getting the benefits of VA financing. It is again, still a good mortgage 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.
What should I know about the VA EEM?
- ANYTHING that contributes to the energy efficiency of your home is covered by the VA Energy Efficient Mortgage. If you have something specific you'd like to do to your home, call us and we'll let you know if you can do it. |
- Regardless of the appraised value of your home, you can borrow up to $6,000 for energy efficient upgrades. |
- You do not need to have as much income to qualify for a VA Energy Efficient Mortgage as you do for a regular VA mortgage. The Energy Efficient Mortgage takes into consideration the fact that your home is more affordable and rewards you accordingly. |
- One positive side effect of an energy efficient home (other than lower utility bills) is that it has a good impact on the environment. The average home that goes through an Energy Efficient Mortgage will reduce greenhouse gas emissions by 2-4 TONS per year. |
- The VA Energy Efficient Mortgage can be combined with both fixed-rate and adjustable-rate mortgages. |
The VA Energy Efficient Mortgage at work
|
Non-Energy
Efficient Home |
Energy
Efficient Home |
| Purchase Price |
$130,000 |
$130,000 |
| Down Payment |
$0 |
$0 |
| Loan Amount |
$130,000 |
$136,000 |
| Interest Rate* |
6% |
6% |
| Monthly PITI** |
$1,101 |
$1,139 |
| Average Utility Bill |
$204 |
$102 |
| Total Expenses |
$1,305 |
$1,241 |
| Monthly Savings |
$0 |
$64 |
| Annual Savings |
$0 |
$768 |
* The interest rate of 6% is only being used to help illustrate this example of the EEM at work. Actual rates may vary from the rate used here. If you'd like to know what markets are doing today, please call us for a customized quote for your scenario.
** PITI stands for Principal, Interest, Taxes and Insurance. The taxes and insurance have been estimated for this example and may vary from where you live. If you would like a customized comparison for your home, contact us and we'll put one together for you.
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