Fannie Mae
Mortgage Products - Environmentally Sound Construction
Housing and the Environment Initiative
MyCommunityMortgage Energy Efficient Mortgage
MyCommunityMortgageTM Energy Efficient Mortgage (EEM) is offered through the Housing and Environment Initiative, which promotes the ..
.. design, construction, and purchase of more efficient homes.
MyCommunityMortgage EEM recognizes that energy efficient homes cost homeowners less to operate on a monthly basis than standard homes because they use less energy.
The MyCommunityMortgage EEM is designed specifically for borrowers who are at or below 100 percent of area median income (AMI), with exceptions for high-cost areas. There is also no income limit for properties located in FannieNeighbors® areas.
MyCommunityMortgage EEM requires the borrower to contribute to the transaction the lesser of $500 or 1% (one percent) of the sale price of the property.
Utility and manufacturer rebates can be applied toward the transaction.
Monthly projected energy savings will be added to borrower income
in the qualification calculation.
*****************************************************
Benefits of the MyCommunityMortgage EEM
 |
Increase borrower qualifying income |
|
Energy savings reduce monthly operating costs |
|
More comfortable home in all seasons and climates |
|
100% of energy improvements can be financed -- up to 15% of the value of the home for existing homes and 5% of the home's value for new construction |
|
Quality assurance with required third-party energy rating report |
Borrower eligibility requirements
|
Borrowers must purchase an energy efficient home |
|
Borrowers must have an income less than 100% of area median income (AMI). However, there are exceptions for Fannie Neighbors areas and high cost areas. |
Borrower contribution
|
Borrower must make a minimum contribution of the lesser of $500 or one percent of the sale price of the property (from the borrower's own funds). |
|
Utility and manufacturer rebates can be applied toward the transaction. |
Treatment of energy savings
|
Monthly projected energy savings, as determined by a third party energy rater, will be added to borrower income in the qualification calculation. |
|
Value of the energy efficiency measures (referred to below as the Energy Savings Value), as determined by a third party energy rater, is added to the home's appraised value. |
Loan-to-Value
Maximum loan-to-value (LTV) is 100 percent
and combined loan-to-value is 105 percent.
For new construction, loan-to-value ratios are based on the lesser of:
|
the purchase price, or |
|
the appraised value of the Property plus the Energy Savings Value as determined through third-party verification. |
Eligible properties
|
Properties must be one-family, owner-occupied home. |
|
New homes must be deemed energy efficient by the energy rating report. As an alternative, the home can meet standards for a prescriptive program, such as EPA's Energy Star Building Option Package. |
Qualifying ratios
No specific qualifying ratios if Desktop Underwriter® (DU) approved; otherwise, total monthly obligation to income ratio may not be greater that 41 percent.
Counseling
Face-to-face pre-purchase counseling is required for first-time home buyers only. The consumer guide, Home Performance Power: Fannie Mae's Guide to Buying and Maintaining a Green Home may be used to enhance home-buyer education. To order, call 1-800-471-5554 and request publication HI274. All borrowers are required to complete early delinquency counseling.
Reserve requirements
No specific requirements if Desktop Underwriter approved; otherwise the required reserves depend on the underlying MyCommunityMortgage option chosen.
Mortgage Insurance requirements
Maximum thirty-five percent mortgage insurance required, depending on the underlying product (Community 97 or Community 100 Plus)
Mortgage Brokers - Special feature code
Please enter special feature code 124 for all MyCommunityMortgage Energy Efficient loans.
In addition, please enter SFC 460 (for Community 97TM Energy Efficient loans) or SFC 480 (for Community 100 Plus ® Energy Efficient loans.)
For more information
For more information on the MyCommunityMortgage Energy Efficient Mortgage, or for a list of participating lenders,
|
Contact Michelle Desiderio at (202) 752-4041 or |
|
Contact Jim Taylor at (202) 752-4085. |
You may also contact your Customer Account Manager at your Fannie Mae regional office.
If you are a mortgage broker,
Please contact your Desktop Originator on the Web® sponsoring lender.
This information is being brought to you thru All Wall Company's website because we believe in..
"Building Better for the People of the World"
regardless of their current income
Please Visit our Web Site by clicking here.
Click here if you came to this web page
from our WEB page, Home Pager.