Federal Energy Efficiency Programs

FHA Energy Efficient Mortgage

How it Works: 5% of the appraised value can be used for energy efficient upgrades with no additional qualifying. This applies to anyone purchasing or refinancing with an FHA loan. The FHA EEM is often called The Best Kept Home Loan Secret

No additional Qualifying!

This loans will not effect the loan qualifying amount because the energy savings offsets the add-on payment. This is the ONLY program that allows you to exceed the maximum loan amount.

NO Cash down

No cash down which means it won’t effect your down payment or how much house you can buy!

Caluclated Energy Savings

The energy savings MUST calculate to less than the additional monthly payment. Example: Your Home receives $12,000 worth of energy upgrades and that adds approximately $50/month for the duration of the loan, the energy savings is guaranteed to be greater than $51/month. The calculated energy savings must exceed the add-on payment therefore assuring a homebuyer there is no added burden on their loan.

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency heating, air-conditioning, and water heaters
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)

Fact: All homes must have a certified energy audit to justify monthly savings.

Note:As an added bonus several Energy Efficient Upgrades may qualify for substantial cash rebate incentives from major California Utilities.

FHA 203K Streamline Rehab Loan

How it Works: Homebuyers can access up to $35,000 for all types of home improvements including energy efficient upgrades. Unlike FHA’s EEM with the 203K Streamline the homebuyer must qualify for the additional funds to be added to the home loan.

No waiting to upgrade your home

The advantage of a 203K streamline loan is homebuyers can get various home improvements completed sooner rather than later by taking advantage of FHA’s low interest rates. 

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency heating, air-conditioning, and water heaters
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)
  • Solar/Photovoltaics panels
  • New counter tops and cosmetic work
  • Flooring: Carpet, tile, etc.
  • Plumbing, electrical, and lumber repair

Fact: All homes must have a certified energy audit to justify monthly savings.

Note:As an added bonus several Energy Efficient Upgrades may qualify for substantial cash rebate incentives from major California Utilities.

VA/Energy Efficient Mortgage Program

How it Works: A maximum of $6,000 can be used for energy efficient upgrades with no additional qualifying. This applies to anyone purchasing or refinancing with a government sponsored VA loan.

No waiting to upgrade your home

The advantage of a 203K streamline loan is homebuyers can get various home upgrades done sooner rather than later by taking advantage of the low interest rates of FHA. 

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency heating, air-conditioning, and water heaters
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)
  • Solar panels
  • New counter tops and cosmetic work
  • Flooring: Carpet, tile, etc.
  • Plumbing, electrical, and lumber repair

Fact: All homes must have a certified energy audit to justify monthly savings.

Note:As an added bonus several Energy Efficient Upgrades may qualify for substantial cash rebate incentives from major California Utilities.

Fannie Mae Homestyle Energy Mortgage

How it Works: Up to 15% of the appraised value of a home can be used for energy efficient upgrades with no additional qualifying when purchasing or refinancing with a Fannie Mae conventional loan.

Calculated Energy Savings

The energy savings MUST calculate to less than the additional monthly payment. Example: Your Home receives $12,000 worth of energy upgrades and that adds approximately $50/month for the duration of the loan, the energy savings is guaranteed to be greater than $51/month. The calculated energy savings must exceed the add-on payment therefore assuring a homebuyer there is no added burden on their loan.

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency heating, air-conditioning, and water heaters
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)

Fact: All homes must have a certified energy audit to justify monthly savings.

Note:As an added bonus several Energy Efficient Upgrades may qualify for substantial cash rebate incentives from major California Utilities.

California State Energy Efficiency Programs

California Housing Finance Agency 

The Cal-EEM + Grant 

How it Works: With a CalHFA FHA loan 5% of the appraised value can be used for energy efficient upgrades with no additional qualifying. With the Cal-EEM + Grant homebuyers can access an additional 4% towards energy efficient upgrades at time of sale for FREE. 

Calculated Energy Savings

The energy savings MUST calculate to less than the additional monthly payment. Example: Your Home receives $12,000 worth of energy upgrades and that adds approximately $50/month for the duration of the loan, the energy savings is guaranteed to be greater than $51/month. The calculated energy savings must exceed the add-on payment therefore assuring a homebuyer there is no added burden on their loan.

How the the Cal-EEM + Grant works

EXAMPLE: A homebuyer with a $220,000 loan can receive an extra 5% for the Energy Efficient Mortgage ($11,000) bringing the total loan amount to $231,000. With the 4% grant, the homebuyer will receive an additional $9,240. This outstanding opportunity gives homebuyers a great deal more leverage than a regular EEM.

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency heating, air-conditioning, and water heaters
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)
  • Solar Photvoltaic
  • New Energy star Cool Roofing

Fact: All homes must have a certified energy audit to justify monthly savings.

Note:As an added bonus several Energy Efficient Upgrades may qualify for substantial cash rebate incentives from major California Utilities.

Energy Upgrade California Utility Rebate Program 

How it Works: Major California utility companies such as Socal Gas, Edison, San Diego gas and electric, and PG&E are offering substantial cash rebate incentives to consumers installing cost effective energy efficient upgrades. These cash incentives can total as much as $10,000 as a reward for increasing the efficiency and comfort of your home.

California has set an ambitious goal:

Reduce home energy use by 40% by the year 2020.

  • Through Energy Upgrade California home upgrade local utilities are offering substantial cash rebate incentives for energy efficient upgrades installed.
  • These rebate incentives are designed for all utility ratepayers in California. They can be combined with EEM customers purchasing or refinancing plus anyone tht wants to take advantage of the opportunities or the programs.
  • To qualify and receive the rebates the consumer must get a BPI (Building Performance Instutue) certified home energy audit and use a BPI certified contractor to complete the project. 

Eligible Energy Efficient Upgrades

  • High-performance energy star windows & sliders
  • Increased levels of attic and wall insulation
  • High-efficiency furnaces & air-conditioners
  • High- efficiency distribution ductwork (diagnostically tested to ensure results)
  • Tankless water heaters
  • Variable speed pool pumps

Note: In addition to energy savings home owners may enjoy the added benefits of a cleaner, quieter, and more comfortable home.

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