March 31, 2006
FHA’s Energy Efficient
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:
Download an application by clicking on this link: http://www.mhrahome.org/media/energystar/fha_eem.pdf
Complete the application
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
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