ENERGY STAR Update - March 31, 2006
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ENERGY STAR Update - March 31, 2006


March 31, 2006


FHA’s Energy Efficient Mortgage
for Manufactured Homebuyers


ENERGY STARÒ manufactured homes are eligible for the Federal Housing Authority’s Energy Efficient Mortgage (EEM) program. The EEM allows borrowers to finance 100 percent of the expense of incorporating an “energy package,” the features that make the home more energy efficient.


With the EEM, the homebuyer qualifies for the additional cost of the energy package and any soft costs related to demonstrating the home meets ENERGY STAR requirements. On average, MHRA projects that most ENERGY STAR homebuyers will qualify for between $1,800 and $3,000 of additional home cost.


Homebuyers who qualify for an FHA loan may have the following advantages with an EEM:


·         Up to $8,000 can be added to their qualifying income, based on a calculation that takes the expected energy savings into account.


·         The calculation for the private mortgage insurance (PMI) premium is based on the cost of the home before energy improvements.


·         The EEM is initially underwritten as if the ENERGY STAR package did not exist. When qualifying a homebuyer, the cost of the energy package is subtracted from the sales price of the home.


The qualification process for an EEM has been streamlined for manufactured homes, eliminating the elaborate and costly home energy rating system (HERS) process. To apply for the EEM, follow these simple steps:


1.       Download an application by clicking on this link:

2.       Complete the application

3.       Mail or fax the completed application to MHRA


MHRA will calculate the energy savings for the ENERGY STAR home and determine the allowable increase in the mortgage amount.


 Order ENERGY STAR Marketing Materials

Reminder – ENERGY STAR marketing materials are available. To download an order form, click on the following link:

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