How VA’s energy-efficiency program could save you cash on home repairs, utility bills

Those familiar with the loan-closing process know that the last thing any participants need or want as they wrap up their paperwork is another clause, codicil or addendum.

But VA’s Energy Efficient Mortgage program may well be worth the extra effort, even if you’re not an eco-warrior. Following through with a bit more red tape could mean $6,000 or more in additional borrowing power or, in some cases, cash in your pocket to make certain home repairs.

Here are five things to know about the benefit, courtesy of VA’s Lenders Handbook and other VA sources:

1. Joint operation. EEM may sound like a standalone mortgage program, but it’s not: It’s an add-on to a home-purchase loan or a refinance loan.

RELATED

Common VA loan myths, and the facts to set them straight

Service members, veterans should check out VA home loan benefits, even if they've heard horror stories about wait times or other problems.

By Karen Jowers

2. Facts and figures. Borrowers can tack on an additional $3,000 to their loans by documenting the planned eco-friendly improvements they’ll make (more on those later). They can add up to $6,000 to the loan if their estimated utility bills will drop low enough to cover the difference in mortgage payments. They can add more than $6,000 in cases where the improvements will raise the home’s value to equal the additional loan amount.

3. What’s covered? Solar energy enhancements qualify, but don’t think you have to cover your roof in panels to rate this benefit. A range of improvements are outlined in the handbook, from major projects (new furnace or water heater) to less-expensive energy-savers (insulation, weather stripping, and so on).

4. IRRRL reality check. If you’re considering an Interest Rate Reduction Refinancing Loan, you could take advantage of the EEM program to make needed home repairs while improving your interest rate. If your furnace is an older model, for instance, a new one likely would qualify as an eco-friendly improvement.

5. Cash out. An IRRRL usually comes without a cash-out option, but veterans can get up to $6,000 in cash to pay for EEM-covered improvements, providing they’re made less than 90 days after the loan closes.

In Other News

VA expands benefits options for vets with other-than-honorable status

Veterans Affairs officials are updating rules regarding benefits eligibility to include more individuals with other-than-honorable discharges.

Senators unsure about House plan to boost troop pay, housing stipends

House lawmakers are moving ahead with plans to increase junior enlisted pay and military housing stipends, but the idea could face opposition in the Senate

No paper, no plastic: Be ready as commissaries adopt reusable bags

Reusable bags can be more expensive for commissary shoppers up front, but more cost-effective in the long run.

Pentagon disputes report of firefight following Abbey Gate bombing

A new report on the 2021 airport bombing in Afghanistan which killed 13 U.S. troops suggests the assault may have involved more than one attacker.

The man who made Belleau Wood — and the Marine Corps — immortal

Floyd Gibbons made history when his dispatch got past the wartime censor.

Load More