Can I make energy related repairs without doing an Energy Efficient Mortgage (EEM)?

The Borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with:

  • Section 203(b) - purchase or no cash-out refinance
  • Section 203(h) Mortgage Insurance for Disaster Victims
  • Energy Efficient Mortgages (EEM)
  • Solar and wind systems - Section 203(k) Rehabilitation Insurance Program

Weatherization improvements may be used on:

  • existing properties (one- to four-units)
  • condominiums (one unit)
  • manufactured Housing (single unit)

Eligible energy-related weatherization items include:

  • air sealing (including weather-stripping doors, caulking window and plumbing penetrations)
  • insulation (attic, floors, walls, basement)
  • duct sealing and insulation
  • smart thermostats and equipment controls
  • windows and doors
  • low flow water fixtures
  • carbon monoxide monitors and other combustion appliance safety measures

The maximum allowable cost (not to exceed actual cost) that can be financed is:

  • $2,000 without a separate value determination;
  • $3,500 if supported by a value determination made by an approved FHA Roster appraiser or Direct Endorsement (DE) underwriter; or
  • no limit if:
    • supported by a value determination made by an FHA Roster Appraiser; and
    • a separate on-site inspection is made by a Residential Combination Inspector (RCI) or Combination Inspector (CI) certified by the International Code Council (ICC).

Installation of weather improvements must be completed within:

  • 30 Days of Disbursement; or
  • 90 Days of Disbursement if the improvements are part of an energy package for an EEM.
  • Installations of solar and wind energy systems must be completed within 120 Days of the mortgage Disbursement.

For financing of weatherization under the 203(k) Rehabilitation Mortgage Insurance Program, refer to 203(k) Rehabilitation Mortgage Insurance Program guidance in Handbook 4000.1.

For additional information see:


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-04727