The Home Buyer's Korner

Information presented should be used for educational purposes only.

October 31st, 2015

Guy looking up in color

GREATER AIEA/WAIMALU HAWAII

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

FHA & An Energy Efficient Mortgages

fha

An FHA Energy Efficient Mortgage, known as an EEM provides a home buyer with funds that are specifically earmarked for energy-related improvements, which have been shown to enhance the energy efficiency of a home and reduce the homeowner’s utility bills.

FHA’s EEM add-on helps home buyers and homeowners save money on utility expenses by allowing them to include the cost of energy efficient upgrades in their FHA loan. FHA’s EEM provides the means for a home buyer to finance qualified energy-saving measures in a single FHA mortgage.

Green Lending – Energy Efficient (EEM)

Under the Energy Efficient Mortgage program add-on, a home buyer is allowed in most cases to finance into the mortgage 100 percent of the cost of eligible energy efficient improvements without an appraisal needed of the energy improvements and without further credit qualification of the home buyer.

The Energy Efficient Mortgage (EEM) helps enhance an FHA-approved home of energy efficiency that can reduce a homeowner’s utility bills by adding energy saving features to a new or existing home. If you currently have an FHA 203K mortgage, you may be also be eligible for FHA’s EEM program, utilizing these two loans together may provide you more funds for improvements.

EEM’s can be used for the purchase of new construction or existing home, or even to refinance a homeowner’s current FHA mortgage. The Federal Housing Administration understands that if a homeowner is required to pay less in utility bills then they would be able to make higher monthly mortgage payments, so qualification for the EEM program is not necessarily required.

Benefits of Green Lending with Energy Efficient Mortgage (EEM)

Taking into consideration of the current environmental and economic circumstances today, there are many benefits to the FHA Energy Efficient Mortgage program, not only does it help homeowners save money, but benefits the environment through reduced emissions and energy usage. The additional benefits include:

  1. Gives home buyer the ability to pay for energy efficient upgrades and home improvements over the life of the loan.
  2. Allows refinancing into a fixed-rate mortgage (rates and payments usually does not increase over time).
  3. Results in higher value.

Requirements and Eligibility for Energy Efficient Mortgage (EEM)

The eligibility requirements for an FHA energy efficient mortgage is the same as any standard FHA loan. To complete the process of an FHA Energy Efficient Mortgage, there are two additional steps:

  1. Home Energy Rating Report

This report must be from either a home energy rating system (HERS) or an energy consultant. The completed report gives a full indication in the improvements that need to be made and will have an estimate of how much you can save each month along with the costs of improvements being less than the present value savings.

  1. Amount Needed

The estimated amount is rolled into the FHA home loan and you do not have to qualify for or make any type of down payment in this amount. After the loan closes, the funds are then placed into an Escrow account by the lender. Once the inspection process is completed and the energy improvements have been installed, the money is then released to the home buyer.

**The FHA’s Energy Efficient Mortgage can be used for the purchase of 1-4 unit new constructions and existing homes.

Questions about FHA’s Energy Efficient Mortgages (EEM)

Can I combine an EEM with my FHA 203k Loan?

Yes, the Energy Efficient Mortgage is used in conjunction with the FHA 203K program. The EEM can be combined with an FHA 203K, providing MORE funds than would be allowed if a home buyer were to solely obtain a FHA 203K Buy It, Fix It mortgage.

Can I refinance with an EEM?

EEM’s can be used for the purchase of new construction or existing home, or to refinance a homeowner’s current mortgage. FHA understands that spending less on utility bills permits a homeowner to pay a higher monthly mortgage amount, so homeowners are not required to qualify for the additional EEM funds.

How does FHA determine if proposed Improvements are eligible?

Energy-efficient upgrades can only be included in the mortgage if the total, combined cost of the improvements is less than the projected dollar amount they will save the homeowner over their useful lifetime.

To estimate the cost savings, an energy consultant will perform an energy inspection and use a Home Energy Rating System (HERS) to prepare a report. The cost of the consultant’s report and any related fees can be included in the mortgage amount.

When does the homeowner get the money?

After the loan closes, the funds are placed in an escrow account by the lender. Once an inspection verifies that the energy improvements have been installed, the money is released to the home owner.

What types of properties are eligible for an EEM?

FHA’s Energy Efficient Mortgage can be used for the purchase or refinance of 1-4 unit new constructions and existing homes.

FHA allows an Energy Efficient Mortgage (EEM) to be combined with a FHA 203K, providing funds beyond FHA loan limits and the buyer’s approved loan amount, up to 5 percent of the value of the property. The EEM proceeds are earmarked for additional improvements that specifically enhance energy efficiency, resulting in lower utility costs for the home. To qualify, an approved Home Energy Rater may be required to perform an audit on the home to assure that energy savings will exceed the cost of improvements over their useful life.

There are some items which may be completed without a Home Energy Rater Audit. *Check with your Lender for a list of these items.

VISIT OUR GREATER AIEA/WAIMALU AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT AIEA/WAIMULA HAWAII

HUD FORECLOSED HOMES IN & AROUND THE GREATER AIEA/WAIMULA HI AREA

USDA FORECLOSED HOMES IN & AROUND THE GREATER AIEA/WAIMULA HI AREA

FNMA HOMEPATH FORECLOSED HOMES IN & AROUND AIEA/WAIMULA HI

FIND MORE FORECLOSURES IN & AROUND WAIMULA HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-OpsTownhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance 96701 Aiea Heights Halawa Halawa Heights Halawa Valley Koauka Loop Pearl Ridge Waimalu Honohina Pl Honohina St Honohono St KAM HWY Poaha Pl Honomanu St Koauka Loop Kam Hwy KAMEHAMEHA HWY Maohu Pl Moanalua Rd Hoohalawai Pl Haaheo Pl Hoolauae St Pohue Pl Pohue St Pohuli St Moanalua Rd Mikalemi St Papalealii St Kanuku Pl Kanuku St Mikinolia Pl Mikioi Pl Kaokoa Pl Hukaa St Kaonohi Pl Kaonohi St Kapahulani Pl Auhau Pl Aumakiki Loop Aumakiki Pl Kapukapu Pl Aupunimoi Pl Hulumanu St Koauka Loop Uahi Pl Uahi St Ualo St Uao Pl Poko Pl Poko Rd Uhaloa St Ualo St Hapaki St Koauka Loop  Uwau Dr Kiawe St Olena Pl Olena St Koauka Loop Koauka St Olepe Loop Anounou Pl Ulu St Ululaau Pl Ulune Pl Ulune St A Kekoa Pl Alia Pl Hailimanu Pl Hapuku St Hapuu St Eke Pl AIEA STRM Iwaiwa St NAPUAHANI RD Kohomua St MOANALUA RD Koauka Loop Pali Momi St Hakina St Halakea St HALAWA HEIGHTS RD Halawa Dr HALAWA DR Halawa Heights Rd HALAWA HTS Welelau Pl Chester Way Kealaluina Dr Aliipoe Dr KOMO MAI Komo Mai Dr Hale Momi Pl Lipoa Pl Lania Pl LANIA WAY Maki St Moanalua Rd Lanikuakaa St Malae Pl Wilou St Moanalua Rd Leialii St Laelua Pl Moanalua Rd Ewelani St Wiliko St Oliwa St LII IPO ST Leihulu Pl Aiea Hts Dr KAUHALE ST Kaulahao St Kaulainahee Pl Naalii Pl Naalii St KAUPILI PL KAUPILI PL Olopana St Aheahe St Neki St Fernridge Pl Aiea Heights Dr AIEA HTS Aiea Kai Pl Aiea Kai Way Aiealani Pl Pahemo Pl Pahemo St Pahiolo St Nahele Pl Nahele St Nahiolea St Leke Pl Kaahumanu St Kaonohi St Kaonohi St Kaonohi St Inea Pl Iho Pl Ainanui Loop Kaahumanu St Kaonohi St Paihi St Komo Mai Dr Nakui Pl Lulu Pl Lulu St Kiawe St Iho Pl Lilia Pl Iho Pl Kaahumanu St Lilikoi Pl NALOPAKA PL Kaonohi St Komo Mai Dr Kaahumanu St Iho Pl Kaahumanu St IWAENA ST Iwaiwa Pl Iwaiwa St IWAIWA WAY Kaonohi St Komo Mai Dr Kaonohi St Iho Pl Kaahumanu St Kaonohi St Komo Mai Dr Kealakaha Dr KEALAKAHA RD KEALALUINA Kealaluina Dr Kaahumanu St Keanae St Kaahumanu St KIHALE PL Keapua Pl PLANTING STRIP Kaahumanu St MOANALUA RD HALAWA HEIGHTS RD NAPUAHANI RD OLOPANA Kilinoe St Kaahumanu St Iho Pl Analio Pl Pakalana St Apala Loop Pakonane Pl WAOALA Waoala Pl Apelekoka St Lupea St Palaialii Pl Kuawa St Piki Pl Piki St Piku Pl Piku Way PALAIALII PL Palaialii Way Heleconia LAKA PL Kuhao Pl Pono St Ponohale St Ponohana Loop Ponohana Pl PONOKAULIKE PL Ponokaulike St Ponokiwila Pl Ponokiwila St Akaaka St Akaaka St Kuini St Malualua Pl Malualua St Paleo Way Nanu Pl Holo Pl Holoai St Kulawai Pl Kulawai St Kulawea Pl Kulawea St Kulea Pl Pilikoa St Holopuni St Kulina St Keanae St KINOOLE PL KUPONO PL Kupukupu Pl Kupukupu St Kupuwao Pl POOHOLUA Pooholua Dr MANAKO Manako Pl Manako St Waiakea Pl Poopaa Pl Napuanani Rd Wailana Pl Onikiniki Pl Onikiniki Way Upapalu Dr UPAPALU ST Keikialii St Kipaepae St Kipikua St Puaalii St Moanalua Rd Moanalua Loop Moanalua Rd WAIPAO WAIPAO PL Leomanu Pl Uao Pl Koauka loop Koauka Loop KEKOA Kekoa Pl Iho Pl Ohaiula Pl Ohapueo Pl Aloalii St Puaalii Pl Puaalii St PUAALII WAY PUAANUHE ST Puaapiki St PUAHAU PL Puahoku Pl PUAILIMA ST PUAILIMA PL Puailima St Puakala St Puakika Pl PUAKUKUI PL Pualaa St Ohekani Loop Ohekani Pl Ohelopapa Pl Ohenana Loop Ohenana Pl PUAOLE PL Puawa Pl Ohiakea St OHIAKU ST Alolua St Ohialomi Pl Heen Way Alania St Kiawe St Oa St Iho Pl Ohiaku Street SALT LAKE BLVD Mahiko Pl Lalani St Lalawai Dr Mahipua St Opukea St Kihale Pl KIHALE ST Ipu Pl Ipuala Loop Ipuala Pl Kihewa Pl Kikala St Hoala St Hoapono Pl Hekaha St Puliki Pl Hele Mauna Pl Mahola Pl Heleconia Pl Meaala St Puluniu Loop Hiliu Pl Popolo Pl Kileka Pl Kilepa Pl Kilihe Way Kilihea Way Kilika Pl KILINOE ST Kiliohu Loop Kilipohe St Huakanu Pl Huakanu St Iho Place Naukewai Pl Lohea Pl Kaahele Pl KAAHELE ST Kaahumanu St Kaakau Pl Kaalo St KAAMILO PL Kaamilo St Kahaea Pl Lokowai Pl LOKOWAI ST Kahapili St Kahema Pl KAHILINAI Kahilinai Pl Kaonohi St IEIE PL Kaholi Pl KAHUA PL Auamo St Nohoalii St Nohoaupuni Pl Nohua Pl Iho Pl Iini Way Kaimakani St Kaimu Loop Palula Way Lauhulu St Laulima St LAUOLE Lauole St ILIEE ST Iliee Pl ILIEE ST Kalaloa St Kalamoho Pl STREAM Kaahumanu St Kalawina Pl Hoio Pl Hoio St Pamoho Pl Hokea St HOKIO PL Kalike Pl Puumakani St Kaonohi St

Join us at Real Estate Social

Comments are closed.