FHA Energy Efficient Mortgage Program

The FHA Energy Efficient Mortgage Program helps homebuyers lower their utility bills by providing the financial resources  to fund a home energy retrofit project as part of an FHA insured home purchase or mortgage refinance.


FHA EEM’s provide mortgage insurance for a homeowner to refinance their home in order to incorporate the cost of an energy retrofit into the home’s mortgage. The homeowner does not have to qualify for the additional money and does not need make a downpayment to receive the funds. The mortgage loan is funded by a local lending institution and all the paperwork is handled by our experienced staff at Eco Performance Builders.


The cost of the energy efficient improvements that may be eligible for financing into the mortgage is the lesser of A or B as follows:

A. The dollar amount of cost-effective energy improvements, plus cost of report and inspections, or

B. The lesser of 5% of:

The value of the property, or

115% of the median area price of a single family dwelling, or

150% of the conforming Freddie Mac limit.

Additional Information

The cost of the energy improvements and estimate of the energy savings are determined by a home energy rating report that is prepared by our office using the Home Energy Rating System (HERS).

The energy improvements will be installed after the loan closes. The lender will place the money into an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings can be achieved.

The maximum mortgage limit for a single family unit depends on its location, and it is adjusted annually depending on market rates

Our experienced staff at Eco Performance Builders has handled many Energy Efficient Mortgages. We deal directly with the lending institution to simplify the process and make the transaction as painless as possible for the homeowner.

For additional information, please contact our office at 1-800-EPB-0703