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VA Energy Efficient Mortgages – a good way to upgrade when buying an existing home!

JUNE 2, 2014

Energy Efficient Mortgages (EEMs) are loans that include funds to cover the cost of making energy efficiency improvements to a dwelling.

EEMs can be made in conjunction with:

  • a VA loan for the purchase of an existing dwelling, or
  • a VA refinancing loan secured by the dwelling.

Acceptable energy efficiency improvements include, but are not limited to:

  • solar heating systems, including solar systems for heating water for domestic use
  • solar heating and cooling systems
  • caulking and weather-stripping
  • furnace efficiency modifications limited to replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights
  • clock thermostats
  • new or additional ceiling, attic, wall and floor insulation
  • water heater insulation
  • storm windows and/or doors, including thermal windows and/or doors
  • heat pumps
  • vapor barriers

The mortgage may be increased by:

  • up to $3,000 based solely on the documented costs
  • up to $6,000 provided the increase in monthly mortgage payment does not exceed the likely reduction in monthly utility costs
  • more than $6,000 subject to a value determination by VA


  • If veteran does the work, only cost of materials can be included in the loan.
  • Lender must determine that improvements are reasonable for the property.

We offer VA EEM loans to any qualified borrower – call us today for more details.  With the heat of the Summer, a brand new energy efficient A/C would be a great addition to that home you are considering!  At rates as low as they are today, adding $6,000 to a loan would be a minimal increase to the monthly payment.

 Call us to find out about your mortgage options! Call us today!

Posted by Pam Woodall

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