Thinking About Going Green on a Houston Home? VA Energy Efficient Mortgage (EEM) Program May Be The Solution
The VA Energy Efficient Mortgage Program allows a veteran, using a VA Home Loan, to upgrade their Houston home at the time of purchase or when they refinance, if the borrower already owns the property. The program allows the veteran to finance up to $6,000 in cost of those upgrades into their home mortgage. This is a great program for those who want help protect the environment and save money.
Allowable energy efficient improvements include, but are not limited to, the following items:
A loan for existing property or a new home may be increased by up to $6,000 for energy efficiency improvements at the option of the lender and veteran at any time up to the loan closing without VA's prior approval. The lender will need evidence of the cost of improvements, such as a copy of the bid(s) or contract itemizing the improvements and their cost, and the lender's determination that the increase in monthly mortgage payments does not exceed the likely reduction in monthly utility costs.
Upon closing, the funds added to your loan amount for the energy efficient improvements will be held in an escrow account until your improvements are completed. Once you notify the lender that the improvements are completed, an inspection is done to verify completion and the funds will then be released.