Energy-Efficient
Mortgage

The FHA has created an  (EEM) program to help achieve national
energy-efficiency goals, reduce pollution and provide better housing for people who might not
otherwise be able to afford it. First, the home must be evaluated according to the Home
Energy Rating System, which requires a home to exceed energy codes by 30 percent. The
Home Energy Rating system awards stars on a scale of one to five.

This program allows buyers of energy-efficient homes to qualify for up to a five percent stretch in their debt-to-income ratio due to lower monthly utility costs. FHA-approved lending
institutions, which include banks, savings and loan institutions and mortgage companies, can make EEM loans.

Sources of Energy Savings We believe that the energy savings of ICF homes result from
three factors: a higher R-value, which reduces heat conduction through the wall; a lower air
permeability, which reduces air infiltration; and a greater thermal mass, which partially buffers the interior from outdoor extremes in temperature.