Events & Press
HUD Releases Mortgagee Letter 2009-18 Removing $8000 EEM Cap |
| Published by Jun 11th, 2009 |
| On June 10, 2009 HUD finally released the long awaited Mortgagee Letter (Mortgagee Letter 2009-18), eliminating the $8,000 cap on FHA Energy Efficient Mortgages (EEM's). After working on this for over half a year with numerous agencies, Energy Efficiency Management, Inc. applaudes the efforts of all involved in making this change a reality. Now, the EEM has the ability to become the vehicle that will bring energy efficiency to all American households, throughout the nation without regard to income group. Energy efficiency and green applications for the nations existing home stock is not just an idea who's time has come, but a reality that is now at the doorstep of every home in America. The newly issued Mortgagee Letter 2009-18 states that: In addition to the base FHA maximum mortgage amount limit, which is calculated on the value of the home, the mortgage loan amount for an EEM can be increased by the cost of effective energy improvements. The maximum amount of the cost of the energy efficient improvements is set out below. The maximum amount of the portion of the EEM for energy improvements is the lesser of 5% of: * the value of the property, or * 115% of the median are pric of a single family dwelling, or * 150% of the conforming Freddie Mac limit. For a copy of the complete mortgageee letter contents, reference Mortgagee Letter 2009-18 at www.HUD.Gov for complete details. |