Can I make energy related repairs without doing an EEM mortgage?

The borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with:

  •   Section 203(b) - purchase or no cash-out refinance
  •   Section 203(h) Mortgage Insurance for Disaster Victims
  •   Energy Efficient Mortgages (EEM)

Weatherization improvements may be used on:

  •   existing properties (one- to four-units)
  •   condominiums (one unit)
  •   manufactured Housing (single unit)

Eligible energy-related weatherization items include:

  •   air sealing (including weather-stripping doors, caulking window and plumbing penetrations)
  •   insulation (attic, floors, walls, basement)
  •   duct sealing and insulation
  •   smart thermostats and equipment controls
  •   windows and doors
  •   low flow water fixtures
  •   carbon monoxide monitors and other combustion appliance safety measures

The maximum allowable cost (not to exceed actual cost) that can be financed is:

  •   $2,000 without a separate value determination;
  •   $3,500 if supported by a value determination made by an approved FHA Roster appraiser or Direct Endorsement (DE) underwriter; or

  no limit if:

-   supported by a value determination made by an approved appraiser or underwriter; and

-   a separate on-site inspection is made by an FHA-approved fee inspector or DE staff appraiser.

Installation of weatherization improvements must be completed within

  •  30 Days of disbursement; or
  •  90 Days of disbursement if the improvements are part of an energy package for an EEM.

For financing of weatherization under the 203(k) Rehabilitation Mortgage Insurance Program, refer to 203(k) Rehabilitation Mortgage Insurance Program guidance in Handbook 4000.1 .

Handbook 4000.1:II.A.8.l.i.(A)-(J) is available at