VA Energy Efficient Mortgages (EEMs) are loans to cover the cost of making energy efficiency improvements to a dwelling and are made in conjunction with a VA loan for the purchase of an existing home or a VA refinancing loan secured by the home.
VA Energy Efficient Mortgages: Maximum Loan Amount
The maximum loan amount of a VA energy efficient mortgage is up to $3,000 based solely on documented costs, or up to $6,000 provided the increase in the monthly mortgage payment does not exceed the likely reduction in monthly utility costs, or Greater than $6,000 subject to the value determined by VA.
VA Energy Efficient Mortgages Maximum Loan-to-Value (LTV)
EEM is an enhancement to the other VA Loan Programs. Follow VA
loan program details.
VA Energy Efficient Mortgages Maximum Guaranty
The maximum guaranty is calculated based on the full enhanced loan amount; however, the veteran‘s entitlement is not charged for that part of the guaranty assigned to the VA energy efficient mortgage enhancement.
Cash Back on VA Energy Efficient Mortgages
Cash back to the veteran requirements are up to $6000 of loan proceeds may be used to reimburse the veteran for the cost of energy efficiency improvements completed within 90 days immediately prior to the loan. If repairs are not completed prior to closing the money will be held in escrow until completion.
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