Energy Efficient MortgageThe Energy Efficient Mortgage (EEM) is offered through Fannie Mae’s Housing and Environment Initiative and promotes the purchase of more energy-efficient homes or the retrofit of existing homes to be more efficient. The EEM recognizes the potential energy savings as qualifying income for home buyers who purchase an energy-efficient home. Mortgage ProductsFixed
Conserve energy, save money, and live comfortablyThe EEM option can be combined with most Fannie Mae products (one-unit, owner-occupied only) and is now eligible for adjustable-rate mortgages (ARMs). Fannie Mae’s MyCommunityMortgage™ (MCM)—one product with which EEM can be used—is available for low- and moderate-income home buyers who wish to purchase efficient homes. The MCM requires only a $500 contribution from the borrower’s own funds, which can come from a variety of sources. With the EEM option, utility, government, and manufacturer rebates are acceptable sources of contributions. NEW MCM product enhancements include reduced mortgage insurance requirements, more flexibility regarding second mortgages, and use of cash-on-hand for closing and down payment costs. All MCM lenders can originate loans with the EEM option. EEM Highlights • Recognize energy savings as qualifying income • Allows energy improvements to be financed • Increase home-buying power • Lower energy costs and household expenses • All incomes eligible • Flexible and affordable finance options • Increase home value • Help improve air quality and create a more comfortable living environment
Consumer Benefits
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2006 Conforming Loan Limits
Number of
UnitsMaximum original
principal balanceAlaska, Guam, Hawaii,
and U.S. Virgin Islands only1 $417,000 $625,500 2 $533,850 $800,775 3 $645,300 $967,950 4 $801,950 $1,202,925
