The US Department of Housing and Urban Development (HUD) announced increases in the dollar amounts of energy efficient improvements in the Federal Housing Administration's (FHA) Energy Efficient Mortgage (EEM) Program. These changes are made in accordance with the Housing and Economic Recovery Act of 2008 (HERA).

Mortgagee Letter 2009-18 provides guidance to approved mortgagees on the new statutorily authorized maximum mortgage amounts for the program. In addition to the FHA maximum mortgage amount limit the mortgage loan amount for an EEM can be increased by the cost of effective energy improvements. The maximum amount of the portion of the EEM for energy improvements is the lesser of 5 percent of (1) the value of the property, (2) or 115 percent of the median area price of a single family dwelling, or (3) 150 percent of the conforming Freddie Mac limit.

Mortgagee Letter 2009-18: Energy Efficient Mortgages – Increase in the Dollar Amount of Energy Efficient Improvements