Corrected FHA EEM Program Info:
The FHA Energy Efficiency Mortgage (EEM) program allows a borrower to finance up to 100 percent of the expense of a cost-effective “energy package” based on analysis by and recommendations of a qualified, third-party home energy rater.
The required home energy audit must be conducted using a tool known as the Home Energy Rating Systems (HERS). Standards for completing of the HERS audit, and for the auditors eligible to conduct a HERS audit, are most commonly established by either:
States agencies having authority to prescribe specific requirements and standards for residential energy ratings and rater qualifications, or;
The national Residential Energy Services Network (RESNET), a non-profit organization founded by the National Association of State Energy Officials and Energy Rated Homes of America, that has set standards for energy efficiency assessments in the U.S. since 1996.
State requirements must be satisfied when completing an EEM transaction in states with specific requirements governing the scope of the energy analysis/rating or the qualifications or licensing of the energy auditor/rater. In states with certification and licensing requirements for energy raters, it is recommended that lenders request the HERS rater license number or evidence of certification, when underwriting an EEM.
Please be sure to visit our EEM Home page, This EEM Home page provides number of resources, including: a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and a Cross Reference Tips sheet, which consolidates many of the EEM rules by category. Visit FHA’s EEM homepage at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemhome
For FHA technical support on EEMs or any other FHA issue, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: firstname.lastname@example.org