VA Energy Efficiency Mortgage or EEM Loan

Available on purchase and refinance transactions, The VA Energy Efficiency Mortgage (EEM) allows the veteran or service member to borrow up to an additional $6,000 for energy improvements on the home.

Examples include: Solar heating/cooling systems for air and water Weather-stripping Furnace efficiency modifications Clock thermostats New or additional ceiling, attic, wall and floor insulation Storm windows and/or doors, including thermal windows and/or doors Heat pumps Vapor barriers.

EEM improvements must result in a net energy cost savings each month. Therefore, if you were to borrow $6,000 for energy efficiency improvements and this caused your mortgage payment to be $30 higher per month, it must be determined that your utility savings each month exceeded $30. Some lenders require documentation from your local utility company and others allow a third party report showing estimated utility savings.