Where can I find appraisal procedures for Energy Efficient Mortgages?

There are no special appraisal procedures for the Energy Efficient Mortgage (EEM) program. 

For Existing and New Construction, the appraisal does not need to reflect the value of the energy package that will be added to the property. If the appraisal does include the value of the energy package, the value must be subtracted from the property value when computing the adjusted value. 

The Appraiser and Property requirements for Title II forward and reverse mortgages are in Handbook 4000.1 II.D.    

Information on Energy Efficient Mortgages is available in Handbook 4000.1 II.A.8.c. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-04023