EEM (Energy Efficient Mortgage) can help you purchase an energy efficient SIP\u00a0home. The EEM recognizes that energy efficient SIP homes cost homeowners less to operate on\u00a0a monthly basis than standard homes because they use less energy. Home buyers who choose\u00a0energy efficient SIP homes can afford to spend more on their housing expenses because they\u00a0will likely spend less on their energy costs.<\/p>\n
Q: How does the EEM benefit the borrower?<\/strong> Q: What types of homes can qualify for the EEM?<\/strong> Q: Can a home that is already an energy efficient SIP home qualify for the EEM?<\/strong> Q: What types of transactions can the EEM be used for?<\/strong> Q: How does a home qualify for the EEM?<\/strong> If the SIP home was newly constructed, the home can have a HERS report\u00a0or the builder may have followed the guidelines of a Prescriptive\u00a0Program such as EPA\u2019s Energy Star Builder Option Program (BOP)\u00a0that specifies the energy efficiency measures in the design and\u00a0construction process. EPA\u2019s BOP provides the builder with the\u00a0specific energy measures to incorporate in the home design such Q: What is a HERS report?<\/strong> The home energy rater inspects the home and measures its energy characteristics, such as SIP Supply is\u00a0recognized as an\u00a0Energy Star Partner\u00a0for providing an\u00a0energy efficient\u00a0building product.<\/strong><\/em><\/p>\n Q: How does the home energy rater produce the HERS report?<\/strong> The HERS report includes an energy efficiency rating score between 1 and 100. The higher the Q: How does a home constructed as energy-efficient qualify?<\/strong> Q: What is the rationale for adding to the value of the property?<\/strong> Q: How is present value of the energy savings calculated?<\/strong> Q: Why is a present value calculation necessary?<\/strong> Q: What is meant by cost effective?<\/strong> Q: What is the typical cost of an energy rating?<\/strong> Q: Can the cost of the energy rating be included in the mortgage?<\/strong> Q: Which Lenders offer the EEM?<\/strong> EEM (Energy Efficient Mortgage) can help you purchase an energy efficient SIP\u00a0home. The EEM recognizes that energy efficient SIP homes cost homeowners less to operate on\u00a0a monthly basis than standard homes because they use less energy. Home buyers who choose\u00a0energy efficient SIP homes can afford to spend more on their housing expenses because they\u00a0will likely […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[23],"tags":[76,75,327,35],"_links":{"self":[{"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/posts\/2898"}],"collection":[{"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/comments?post=2898"}],"version-history":[{"count":0,"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/posts\/2898\/revisions"}],"wp:attachment":[{"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/media?parent=2898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/categories?post=2898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sipsupply.com\/sip-blog\/wp-json\/wp\/v2\/tags?post=2898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nA:<\/strong> The EEM benefits the borrower in several ways. First, the estimated energy savings are added
\nto the borrower\u2019s income to allow the home buyer to qualify for a larger total mortgage amount.
\nSecond, by increasing borrowing power, the EEM allows borrowers to include the costs of energy
\nimprovements into the total mortgage amount. 100% of the energy improvements, up to 15% of
\nthe value of the home, can be financed and paid for over the life of the mortgage, reserving the
\nborrower\u2019s cash for more immediate, move-in costs. Third, the value of the home is adjusted by
\nthe value of the energy efficiency improvements.<\/p>\n
\nA:<\/strong> The EEM can be used for one-unit, single-family, owner-occupied principal residences, PUDs,
\nand condominiums. The homes may be new construction or existing housing.<\/p>\n
\nA:<\/strong> Yes, the EEM can be used for homes that are energy efficient at the time of purchase.<\/p>\n
\nA:<\/strong> The EEM can be used for both purchase and refinance transactions. The standard EEM can
\nbe used for limited cash-out refinances.<\/p>\n
\nA:<\/strong> Existing homes must have a Home Energy Rating System (HERS) report to evaluate the
\nhome\u2019s energy efficiency in its current state or to identify opportunities for cost-effective energy
\nefficient upgrades.<\/p>\n
\nas the SIP envelope that will result in an energy efficient home\u00a0program. After completion, the home is evaluated with a HERS\u00a0rating.<\/p>\n
\nA:<\/strong> The home energy rating (HERS) is a standard measurement of the home’s energy efficiency.
\nAn energy rating allows a home buyer to easily compare the energy costs for the homes being
\nconsidered. Home energy ratings involve an on-site inspection by residential energy efficiency
\nprofessional — a home rater. Home energy raters are trained and certified by the operating home
\nenergy rating system.<\/p>\n
\ninsulation levels, window efficiency, wall-to-window ratios, the heating and cooling system
\nefficiency, and the solar orientation of the home. Diagnostic testing, such as blower door for
\nleakage and duct leakage testing, is often part of the rating. The home receives a point score
\nbetween 1 to 100, depending on its relative efficiency. An estimate of the home’s energy costs is
\nalso provided. A homeowner who wants to upgrade the energy efficiency can use the energy
\nrating to evaluate and pinpoint specific, cost-effective improvements.<\/p>\n
\nA.<\/strong> The home energy rater inspects the home and measures its energy characteristics, such as
\ninsulation levels, window efficiency, wall-to-window ratios, heating and cooling system efficiency,
\nsolar orientation of the home, and water heating system efficiency. Diagnostic testing may also
\nbe done, which includes using a \u201cblower door\u201d test to check for air leakage and testing for duct
\nleakage. The results of the inspection are entered into the home energy rating system. The
\nsystem uses data regarding the local climate and utility costs, and the data about the specific
\nhome to produce a written report.<\/p>\n
\nscore, the greater the energy efficiency. A sample HERS report is included in this document.<\/p>\n
\nA:<\/strong> The HERS report compares the SIP home against a similar home without the energy efficient
\ndesign (often called the \u201creference home\u201d). The rating should confirm that the final construction
\nachieves the intended design and performance. For homes that are already energy-efficient, the HERS report will provide the following data required by the Lender for an EEM:<\/p>\n\n
\nA:<\/strong> The energy efficiency measures in a home add value to a property, however, this value may
\nbe difficult to assess during the appraisal process. The HERS report provides the amount of
\nadditional value specific energy efficiency measures will add to a home\u2019s total value.<\/p>\n
\nA:<\/strong> The energy rating report will provide the Lender with the present value of the energy
\nsavings.<\/p>\n
\nA:<\/strong> The present value calculation accomplishes two things. First, in new construction or for a SIP
\nhome energy efficient \u201cas-is,\u201d it may not be possible to isolate the installed costs of the energy
\nmeasures. So, the value we attribute is the energy savings over the expected physical life of the
\nequipment. Second, for homes that will benefit from energy improvements, the present value
\ncalculation is used to determine whether the energy improvements are cost effective.<\/p>\n
\nA:<\/strong> The benefit the borrower will receive in energy savings must exceed the cost to install them to
\nbe considered energy efficient. If the benefits do not exceed the installed costs, then the
\nimprovements are not cost effective and the property would not qualify for the EEM. Using
\nPanels from SIP Supply, the homeowner will realize up to 60% energy savings, and only
\nmarginally more expensive than traditional framing. SIPs prove to be cost effective<\/p>\n
\nA:<\/strong> The cost for a home energy rating is generally between $150 and $400. Some utility
\ncompanies and\/or government agencies may offer programs to subsidize the cost of the rating.<\/p>\n
\nA:<\/strong> The cost of the energy rating is considered a transaction cost, similar to the costs incurred for
\nan appraisal or a home inspection, and should be treated like these transaction costs.<\/p>\n
\nA:<\/strong> The current list of lenders that can offer the EEM is available on
\nhttp:\/\/www.fanniemae.com<\/a> or http:\/\/www.efanniemae.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"