Want to Replace A Window or Two and Not Pay For It Right Away?

Want to Replace A Window or Two and Not Pay For It Right Away?

Window Replacement and the FHA Energy Efficient Mortgage (EEM)

I’m not a mortgage broker or a loan officer but I know you can refinance the cost (or part of it) of installing new windows if they’re energy efficient.

The program is run by FHA, the Federal Housing Authority.  If you are getting a mortgage and plan to install energy efficient items, the FHA wants to help. Improving the efficiency of heating and cooling systems, insulation, weatherization, is a more precise way of saying it.  So replacing old windows is covered.

How The Progam Works

You would get an FHA mortgage, like you normally would, except that EEM Mortgage finances your mortgage and the cost of the remodeling of your home that increases the homes energy efficiency.

The money for the energy-saving part of the remodeling is set aside, in a separate account, till you’re done installing he more energy-efficient items to the home.  Then you get it.  You have up to 90 days to finish installing the energy-efficient items.  And, yes, the FHA will not take your word for it, it will have an appraiser or some other independent party verify that the work is done and done properly.

The EEM can be used for existing or new homes as long as they’re single family houses, 2-4 unit apartment buildings, condominium units or townhouses.

You do need to qualify for an EEM just like you would for any other FHA-insured mortgage.

If you thought you’d go nuts and spend oodles of dollars on energy-efficient items and have the EEM help you pay for them, think again.  The FHA has put a limit on the amount that can be spent on energy-efficient items to $8,000 or 5% of the value of the home, whichever is lower.  The exception is very cheap homes where 5% of the value doesn’t let you do much.  With those homes, the limit is $4,000.

If you’re a veteran, you don’t need the FHA, as the VA has its own EEM program.

If you want more details about this program, you need to talk to mortgage brokers or loan officers or visit sites like the Chicago Mortgage Broker.  For more information on window replacement visit http://chicagowindowsreplacement.info

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