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What are Energy Efficient Mortgages (EEMs)? Follow

An energy efficient mortgage (EEM) is a mortgage that credits or monetizes a home's modeled energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to more easily qualify for a mortgage and a better, more energy-efficient home. To qualify for an EEM, a borrower typically needs a Home Energy Rater to conduct a home energy rating before financing is approved. This rating verifies the energy efficiency level of the home and provides a dollar value for the home’s energy savings that the lender can then include in the borrower’s debt-to-income ratio. For more information about EEMs visit https://www.energystar.gov/newhomes/mortgage_lending_programs/energy_efficient_mortgages



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