EEM'S 203k and Energy Efficient Mortgages

First what are the 203k and Energy Efficient Mortgage (EEM) products?

The 203k products are the 203K and the 203K streamline. The major difference is the renovations complexity and the dollar value. Projects that are under $35 K and are not complicated engage the soft FHA203K Streamline product for renovations. The regular 203K projects are usually north of $35K and require permits and plans.

Standard financing for a purchase and renovation project would normally require a purchase loan, plus a bridge or construction loan and then these would eventually be rolled into a permanent loan. This is a lengthy and costly way to buy a first time or move up property and is very hard on those involved. The 203Ks are all three loans in one… simple, and easy.

Savvy Realtors and Buyers are leveraging these 203K products on today’s housing inventories to get exceptional value with their purchasing dollars. Not coming out of pocket for fix-up dollars after the purchase and having a ready to go home really has pushed the rehabilitation loans to the forefront of the buyer’s number-one test for housing choices.

The attraction that the EEM products are generating is the ability to take a good buying decision and create a great buying decision. The EEM products are added to the mortgage to up-grade and up-date the energy consuming measures in the home. The energy codes are now rating homes, new and old, with a MPG (miles per gallon) type rating. These ratings help determine the cost to operate the home. The feeling is that with energy prices going up, it will be important to homeowners and buyers not to have an energy sucking lemon on their hands that carries a high cost to operate. The EEM will up grade energy features that will offset the cost to install and operate, thus consuming less monthly dollars, providing more comfort and a more appealing resell home. Good to Great!

The EEM products do not require additional qualifying or down payment. Anyone who qualifies for an FHA loan automatically qualifies for the EEM.

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