Eco Home: What is an “Energy Efficient Mortgage”?

I’m in the process of planning some extensive renovations to my 100+ year old brick Victorian townhome.  Over the years, as a real estate broker, I have assisted many architects, developers, and regular homeowners in identifying financing for this process. Although I have several contacts for renovation loans for both commercial and residential projects, as I am exploring options I am finding that there are not many lenders who are currently familiar with an interesting product called the FHA Energy Efficient Mortgage or “EEM”.

I recently met with Kofi Ofori, who is a loan officer for Envoy Mortgage.  I found Envoy and Kofi directly through HUD’s website as a qualified lender for this loan program.  Kofi answered a lot of questions that I had about this mortgage option.

One aspect that I find interesting about the EEM is that rather than being based upon a dollar value that the energy efficient improvements add to the overall value of the property (which they do), the amount loaned is based upon a rating system of how much the improvements will actually save the homeowner over a period of time.  With mortgage interest rates so extremely low right now, this can possibly allow a borrower to very affordably finance improvements that will essentially pay for themselves over time.

Rather than provide additional details here, I’ll refer you directly to Kofi’s Ofori’s blog.

About Suzanne

Suzanne Des Marais is an Associate Real Estate Broker and founder of 10 Square Team, which is affiliated with Keller Williams Capital Properties. Suzanne is honored to be the 2014 President Elect of the 8000+ member Greater Capital Association of Realtor(r)s (GCAAR). She sits on the board of directors of the National Associatiion of Realtor(r)s (NAR) and is a member of the NAR Housing Opportunities Committee. Well known as "hipchickindc" for her weekly contributions to, she is frequently quoted by the media, including NBC News, The Washington Post, Washingtonian Magazine, and The Washington City Paper, for her expertise regarding the DC real estate market.
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One Response to Eco Home: What is an “Energy Efficient Mortgage”?

  1. Pingback: Good Deal or Not: Stadium Armory (East Capitol Hill) with solar panels | Houses with Character

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