Fannie Mae had previously dropped its Energy Efficient Mortgage feature. It has replaced that product with a new Energy Improvement Feature. The new feature only applies to the upgrading of an existing home through a purchase or re-finance mortgage. The features of the new Fannie Mae product are:
- The financing of energy improvements found by a RESNET Home Energy Rating to be cost-effective of up to 10% of the as-completed appraisal. This amount is subject to standard Fannie Mae LTV, CLV and HCLTV ratios.
- The cost of the home energy rating can be included as the cost of the energy improvements.
- Appraisers will be responsible to determine the as-completed value of the home based upon the energy improvements that were made.
- Appraisers will also be responsible for verification that the energy improvements being financed were completed.
- Only single family homes qualify.