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is solar paneling included in Energy Efficient Mortgage through FHA?

i actually don't know a lot aboutt the EEM option except that it helps fund energy efficiency improvements. in fact reading this HUD page http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/energy-r didn't exactly help. installing solar is rather expensive so i'd understand if it exceeds limits but could solar be included in the mortgage? or do you know of any lenders who would approve this?

by jvincento.md784325 from Paradise Valley, Nevada. Nov 19th 2014 Reply


John Paul Mulchay (JohnPaul)
#42 ranked lender in Nevada - 8 contributions

jvincento,If you are thinking about adding solar, you'll most likely need to utilize the FHA 203k loan, which is a rehab loan, in order to include the cost. EEM costs are limited for a standard FHA loan. Most home buyers jump right to solar when the most savings can be found by completing an energy audit and first increasing efficiency by improving windows, seals around doors and windows, and insulation. By comparison, these improvements are less costly and more easily included in a standard EEM mortgage without having to get into the more complicated and time consuming rehab loan. I am certified as a Green Lending Specialist so feel free to reach out with any questions.JP

Nov 19th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

The short answer is yes.. it can be done using FHA's EEM as well as FHA's 203(K) rehab loan.. but the best loan product for adding solar would be Fannie Mae's HomeStyle renovation loan. With this loan, if you put 20% down, you don't pay mortgage insurance, and there are no consultant fees or report fees necessary like there would be with FHA.. and FHA has the most expensive MI fees of any loan product and in most cases, it's there for the life of the loan. If you have less than 20% down, then you will be required to pay MI, but once you pay for 2 years, and your value increases to where you have at least 20% equity, you can call your lender and request that the MI be removed, and you will not have to refinance to do this.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Nov 20th 2014
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Nathan Kessler (nathan.kessler@guaranteedrate.com)
#44 ranked lender in Nevada - 70 contributions

Solar can be included in the EEM Give me a call and we can discuss it. Nathan T. Kessler, Sr. Loan Officer NMLS 377217 702-683-3126 City First Mortgage Services.

Nov 19th 2014
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#2 ranked lender in New York - 2,237 contributions

Nathan is correct!

Nov 19th 2014
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