Comments on: 10 Things You Should Know about the Energy Efficient Mortgage

By: Canada Goose Parka

Canada Goose Parka — Fri, 30 Sep 2011 05:46:55 +0000

Thank you for sharing your
Thank you for sharing your great article and I like it very much. Welcome to Canada Goose Parka.

By: Dustan Shepherd

Dustan Shepherd — Thu, 15 Sep 2011 23:10:45 +0000

Allison nice article, as a
Allison nice article, as a FHA 203k specialist I use the EEM as a stand alone FHA product or as an add on to a 203k. However, I find that many times there are additional items such as siding or roofing that is also requested by the borrower thus I put all the repairs inside of a 203k standard or streamline. HUD still had the cap of $8,000 in the credit manual until earlier this week and they implement a mortgagee letter that noted the manual was outdated and all interested parties should head over to the EEM page at HUD.gov to see the most current guidelines. I am also working with the National Energy Retrofit Institute (watch the video at http://youtu.be/6HUXGpTo9jU) at Central Missouri University to expand the EEM not only in the Kansas City market but nationally as well. Trust me there is money to be made working with the EEM while making a genuine impact on the ecology and the economy

By: Sam Young

Sam Young — Sat, 10 Sep 2011 02:08:23 +0000

Allison:
Allison: The EEM concept is appealing and I like it, but it has proven to be incredibly frustrating for me as a HERS Rater. I've worked on two.

When I finished my first one, my client was so unhappy with result they refused to pay me. They wanted the money for improvements they wanted to make, not the difference between the building code and better energy efficiency.

When we tried to apply it to new construction, the convoluted path I had to take to make the mortgage processor and real estate agents happy was very involved and perplexing to say the least.

If someone wants an EEM and asks me for it, I will help them. However, I'm not going out of my way to promote them. I don't need to invite headaches!

The biggest complaint I've heard about them is that there are better and cheaper mortgage products to achieve the same result.

When this product becomes more attractive in the market place, I'll probably spend more time with it. Until then . . .

By: Chris Bellanca

Chris Bellanca — Fri, 09 Sep 2011 23:23:07 +0000

Allison, in your experience,
Allison, in your experience, what are the top improvements that qualify?

By: Jason Payne

Jason Payne — Fri, 09 Sep 2011 21:45:25 +0000

Allison,

Allison,

Great list, and thanks for helping spread the word. It really is the most "no brainer" loan out there.

Andrew - Nice to see others out there making things happen! FYI- Wells Fargo still has the old cap of $8,000 as an overlay, and that has made a few that we have done very difficult to fit in all of the necessary and desired improvements. I would encourage you to try and get some local direct lenders on board as well. They have more flexibility in their underwriting guidelines, and, depending on the location, they can approve as much as $30,000 for deeper retro-fits.

By: Lily Perkins-High

Lily Perkins-High — Fri, 09 Sep 2011 21:09:37 +0000

Informative post! Thanks.&amp
Informative post! Thanks.

You might be interested in reading a related article on our blog about the effect of energy efficiency improvements on property value, which seems related, especially to reason #9. Here’s the link: http://blog.wegowise.com/blog2/bid/88599/The-Effect-of-Energy-Efficiency-Investments-on-Property-Value 
Best,
Lily

By: Andrew J. Courts Jr.

Andrew J. Courts Jr. — Fri, 09 Sep 2011 20:27:31 +0000
Allison,

Allison,

Thank you for your tireless support of EEMs. Have also spent countless hours promoting EEMs and have completed well over 50 of them. Once a loan officer realizes the benefits and can get an underwriter on board, usage increases. Most used for appraisal issues such as outdated/inoperable hvac. There is a automatic approval for "no heat"

Biggest hurdle are slow to understand Realtors who want nothing to do with anything that may slow closing. Working the NAR or local and State asscociations may yield better results.

The best thing about the EEM is that you can do a streamline refinance with no appraisal, no credit check and no closing costs(wrapped into rate) except for HERS fee. Have had success with HVAC replacement with dual fuel and duct replacement.

Wells Fargo appears to be the best prepared and willing to write them.

By: M. Johnson

M. Johnson — Fri, 09 Sep 2011 17:12:43 +0000
Thanks Allison for telling us
Thanks Allison for telling us about this. Although I had vaguely heard about the EEM, did not realize it was a well defined, structured product. And I consider my self a (debt-adverse) energy nerd. With more publicity this product should grow as it deserves.