Can I combine the EEM program with Section 203(k)?

Yes. The Energy Efficient Mortgage (EEM) program can be used in conjunction with any mortgage insurance under Title II, including:
  • 203(b)
    • Purchase
    • No cash-out refinance
  • 203(h) Mortgage Insurance for Disaster Victims
  • 203(k) Rehabilitation Mortgage Insurance Program (Standard and Limited)
  • Weatherization Policy (Existing Construction only)

The property types that the EEM may be used with include:
  • New Construction properties (one- to four-units);
  • Existing Construction properties (one- to four-units);
  • Condominiums (one unit); or
  • Manufactured Housing.

When utilizing an EEM in conjunction with a 203(k), the items included in the maximum financeable energy package must be excluded from the items included when calculating the initial maximum Base Loan Amount.

For information please visit the Energy Efficient Mortgage Program web page at

For additional information see Handbook 4000.1 II.A.8.c. at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03442