• Mortgage Rates
  • Home Buyer Tips
  • Home Seller Tips
  • Real Estate
  • Around The Home

Michael Inkman

Fairway Independent Mortgage Corporation

  • Home
  • About
    • About Michael
    • Testimonials
  • Types of Loans
  • Mortgage Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Get Pre-Approved Now!
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • FAQs
  • Blog
  • Contact

Refinancing to Pay for Renovations? Consider the VA’s Energy Efficient Mortgage Program

June 8, 2016 by Michael Inkman

Refinancing to Pay for Renovations? Consider the VA's Energy Efficient Mortgage ProgramMaking renovations that are energy efficient is not just a great way to reduce energy output, but it’s also an effective way of decreasing monthly utility costs. It serves as a one-time investment that will save money in the long run.

However, renovations are costly and not everybody has the extra finances required to make energy efficient changes. This is where the VA’s energy efficient mortgage (or EEM) program comes into play.

The program is designed to allow veterans to apply for a new mortgage or refinance an existing one with extra funds to renovate the home to be up to energy efficient standards.

The Three Tiers Under The VA’s Energy Efficient Mortgage Program

The VA has three tiers for the cost of renovations to be done under the EEM program. The lowest, and easiest to be accepted for, is for improvements that will total under $3,000. A list of costs or a contractor’s quote may be required in the application process.

The second tier is for renovations that will cost between $3,001 and $6,000. This will require the homeowner or homebuyer to get a Home Energy Rating System report to detail how efficient a home is currently and what can be done to decrease its HERS rating.

The final tier is for any improvements to the home that will cost over $6,000. This is the most difficult tier to receive acceptance for as both the Department of Veterans Affairs and the private lender will need to approve the renovations.

Types Of Improvements Under The EEM Program

The program covers a variety of renovations for the home. These include: new insulation to walls, floors and ceilings, solar powered heating and cooling systems, thermal doors, thermal windows and new caulking and weather stripping.

There are also items that will not be covered by the program, including new roofing, vinyl siding and air conditioning units.

Using The EEM Program To Receive A Larger Loan

Any veteran or currently active military member looking to buy a brand new home can still benefit greatly from the energy efficient mortgage program. If a new home undergoes a HERS report and passes as being energy efficient, this can be applied to a VA mortgage to receive as much as $6,000 extra on the loan.

Speak with your local mortgage professional to go into more detail on the intricacies of refinancing under the EEM program and whether or not your home will qualify. 

Home Mortgage Tips Tagged: Home Mortgage Tips, Mortgage Refinancing, Mortgages

Michael Inkman

Contact Michael


michael@michaelinkman.com
Mobile: (214) 762-4659
NMLS #152707
FIMC
Company NMLS #2289

Browse articles by category

Connect with Me

Sign Up for My FREE e-newsletter!

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Categories

Archives

Quick Links

  • About Us
  • Accessibility Statement
  • Privacy Policy
  • Contact us
Texas Consumer Complaint and
Recovery Fund Notice

Third Party FIMC: bestmortgageblog.com
Equal Housing Opp
Company NMLS #2289
For licensing information, go to: www.nmlsconsumeraccess.org

Privacy Policy | Terms of Use

Complaints may be directed to: (877) 699-0353 or Email us: customerservice@fairwaymc.com.
The content on this website is written by Michael and reflects his opinion, and not the opinion of Fairway Independent Mortgage Corporation.

Fairway Independent Mortgage Corporation
1800 Golden Trail Court
Carrollton, TX 75010

Copyright © 2022 Michael Inkman  ·  All rights reserved   ·   Log In