Can repairs for energy efficiency be included in a Streamline Refinance?

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

FHA offers three types of no cash-out refinances:
a)     Rate and term
b)     Simple Refinance
c)     Streamline refinance 

The lender must calculate the dollar amount of a cost-effective energy package as determined by the home energy audit, as shown in Handbook 4000.1 II.A.8.c.iii (Energy Package). The EEM Calculator, located in FHA Connection (FHAC) on the Case Processing screen, will perform the calculation of the Maximum Financeable Energy Package. 
For a Streamline Refinance, the EEM Calculator uses the appraised value from the initial transaction, contained within FHA Connection records, as the Adjusted Value. 

For additional information see Handbook 4000.1 II.A.8.c and II.A.8.d.i.(B)(2) available 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-04325