What are Energy Efficient Mortgages (EEMs)?
Energy efficient mortgages (EEMs) are mortgages with special underwriting guidelines that can make it easier for borrowers to qualify for a loan to purchase a home that features cost-effective energy efficient improvements. For example, one common EEM allows the lender to increase the borrowers annual income by a dollar amount equal to the estimated energy savings. EEMs allow lenders to make larger loans, more loans, and safer loans.
