Energy Efficient Mortgage (EEM)
An FHA or conventional mortgage rider that lets buyers finance qualified energy upgrades on top of the purchase mortgage.
Quick answer
Energy Efficient Mortgage (EEM): An FHA or conventional mortgage rider that lets buyers finance qualified energy upgrades on top of the purchase mortgage. Typical cost: Same rate as base mortgage; HERS rater report required (~$400–$800)..
Why it matters
EEMs let buyers bake solar, insulation, or HVAC upgrades into a single 30-year mortgage at the lowest possible rate.
Typical cost
Same rate as base mortgage; HERS rater report required (~$400–$800).
Pros
- • Lowest available rate
- • Buyer qualifies on energy-adjusted income
Cons
- • Limited contractor network
- • Modest improvement caps
Common uses
- • Buying an older home and planning upgrades immediately
Alternatives
HomeStyle EnergyStandalone solar loan
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Frequently asked questions
- What upgrades qualify for EEM?
- ENERGY STAR-rated HVAC, insulation, windows, water heating, and solar.
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