VA Energy Efficient Mortgages
What Is A VA EEM loan?
As a Veteran, you can qualify for a lower interest rate and no down payment (non-veterans must pay 3% down). For an VA Energy Efficiency mortgage (EEM) the income qualifications are reduced when compared with a conventional VA home loan. The loan can be combined with other loans, both fixed rate and adjustable. You can borrow up to $6,000 for improvements, regardless of your home appraisal. Applicants cannot include the cost of their own labor in the total amount.
With a VA EEM loan, you can easily save $100 a month in utility costs. This reduction helps with the amount of mortgage you can afford. The VA EEM loan is insured by the Federal Housing Administration, which decreases lending risk to the lender.
Not all lenders offer VA EEM loans, a lender must participate in the VA loan program in order to provide you with this particular type of loan. The lender will help you obtain the required documentation to qualify for a VA EEM loan. You will need a Certificate of Eligibility in order to qualify, whether you are a first time user, or you have previously obtained a VA loan. No additional home appraisal is needed, but applicants must submit a Home Energy Rating (HER), contractor bids, along with the eligibility documentation. You may call 800-405-6682 for more information from a VA mortgage specialist.
