HUD Energy Efficient Mortgages (Federal)

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Last modified on May 23, 2011.

Financial Incentive Program

Place United States

Name HUD Energy Efficient Mortgages
Incentive Type Federal Loan Program
Applicable Sector Residential
Eligible Technologies Solar Water Heat, Solar Space Heat, Photovoltaics
Active Incentive No

Implementing Sector Federal
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Varies

Maximum Incentive Varies

Terms Vary
Program Administrator U.S. Department of Housing and Urban Development
Date added to DSIRE 2002-02-25
Last DSIRE Review 2002-03-21

References DSIRE[1]


The U.S. Department of Housing and Urban Development (HUD) provides mortgage and loan insurance through the Federal Housing Administration (FHA). One FHA program is the Energy Efficient Mortgages Program (EEM). FHA insures mortgage loans so that first-time home buyers and residents of disadvantaged neighborhoods can obtain funding to help finance the cost of adding energy-efficiency features to new or existing homes. The FHA does not provide loan money to individuals. Instead, all loans are made through FHA-approved lending institutions-which include many banks, savings and loan associations, and mortgage companies. Applications are submitted to the local HUD Field Office through an FHA-approved lending institution. HUD's homepage offers a searchable list of approved lenders.

EEM can be used to finance photovoltaics, solar water and space heating, and energy efficiency. Several FHA programs are eligible for the EEM, including the FHA Section 203 (b), (h) and (k) Programs and the Title 1 Home Improvement Loan Program. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. Up to $200 of the cost of an energy inspection report may be included in the mortgage. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.

EEM is authorized under Section 513 of the Housing and Community Development Act of 1992. Program regulations are in Mortgage Credit Analysis for Mortgage Insurance on One-to-Four-Family Properties (HUD Handbook 4155.1), paragraph 2-20. This and other FHA programs are administered by the Office of Single-Family Housing in HUD's Office of Housing-Federal Housing Administration.

Incentive Contact

Contact Name Information Specialist - HUD
Department U.S. Department of Housing and Urban Development

Address 451 7th Street S.W.

Place Washington, District of Columbia
Zip/Postal Code 20410
Phone (202) 708-1112
Phone 2 (202) 708-1455


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"