VA Energy Efficiency Mortgage

VA Energy Efficiency Mortgages, also known as VA EEM loans, allow a veteran to improve the energy efficiency of their home and improve the home's value.  VA EEM mortgages allow for energy improvement costs up to $6000. 

The VA EEM program is available for both VA purchases and VA refinances.  

To qualify for EEM improvements, it must be determined that the savings gained from reduced utility bills will be greater than the costs of adding the energy improvements to the mortgage balance.  For example, if the borrower takes the full $6000 in improvements and it increase the mortgage payment by $35 per month, then it must be determined that the utility bills will be reduced by at least $35 per month.  Obviously there is a bit of educated guesswork involved with predicting future utility bills, so the improvements do need to make sense. 

VA EEM improvements can also increase the value of the home.  When it comes time to sell the home, being able to market the home as a Green Home is attractive to potential home buyers.  Improved energy efficiency makes the overall cost of homeownership cheaper and makes the home stand out in comparison to home that are not as energy efficient.   


The Most Common VA EEM Improvements:  

  • Insulation for walls, floors, ceilings, attics or wherever it is needed

  • Vapor barriers to wrap the home and improve the R value, often done at the same time as other      insulation 

  • Solar Panel system for heating and cooling the home's temperature

  • Solar Panel system for heating and cooling the home's water supply

  • Weather stripping to prevent air leaks

  • Furnace efficiency improvements

  • Replace old drafty windows with new energy efficient windows

  • Replace older doors with new energy efficient doors

  • Replace thermostats with new programable digital thermostats which beeter help to regulate and control temperatures during peak and off peak home usage hours