The EEM which stands for Energy Efficient Mortgage is a financing to make the home into an energy efficient home. Thereby, the homeowner decreases the expense to own the home. There are three types of energy efficient mortgage.

The three types of energy efficient mortgage are Conventional, Federal Housing Administration, and Veteran Administration Energy Efficient Mortgages. In Conventional Energy Efficient Mortgages, the mortgage lenders who sell mortgage to Fannie Mae and Freddie Mac offer this type of mortgage.

The estimated energy savings for the home increases the buying power of the home buyer. The amount of estimated energy savings will be added on the income of the home buyer. Using the estimated energy savings and improvements, Fannie Mae also adjusts the value of the home.

In Federal Housing Administration Energy Efficient Mortgage, the mortgage lenders can add all the additional cost of energy efficient mortgage improvements on the approved mortgage loan. Provided, the additional cost is less than or equal $4000. Or, the additional cost is less than 5 percent the value of the home or up to maximum of $8000. There is no additional down payment required.

And, the home is site-built or manufactured home. A site-built home is basically constructed on the site or location. Using stock materials, the construction workers erect, frame, and finish on location. However, some materials may be fabricated off-site.

The manufactured home is built in the factory rather than on the site. Then, the manufactured home is taken to the site. The tractor trailers usually transfer the manufactured home thru public highways. The manufactured home is less expensive than site-built home. Oftentimes, the manufactured home is associated with rural areas and trailer parks.

In Veteran Administration Energy Efficient Mortgage, the qualified military personnel, reservists, or veterans can apply for the mortgage loan. The additional cost of energy efficient improvements is between $3000 and $6000. And, the home exists already.