Cal-EEM + Grant – Energy Efficient Mortgage

Program Overview

The CalHFA Energy Efficient Mortgage (Cal-EEM + Grant) loan combines the CalFHA FHA insured first mortgage with an additional grant (EEM Grant).

The EEM Grant allows energy efficient improvements over and above the maximum FHA loan limit.

The Energy Efficient Mortgage Grant is only available with the CAl-EEM first mortgage.  The Grant is for up to 4% of the first mortgage amount, which includes the upfront mortgage insurance premium.

Borrower Eligibility

  • Owner Occupied only – borrower must live in the home as a primary residence
  • Minimum 640 Credit Score for automated underwriting approvals
  • Minimum 660 Credit Score for manual underwriting approvals
  • Full income / asset documentation only – W2 and/or tax returns
  • Borrower contribution can be Gift
  • Do NOT have to be a first time buyer
  • Must complete 8 hour Homebuyer Education course if first time buyer
  • 45% Debt to Income Ratio (regardless of automated approval findings)
  • 43% Debt to Income Ratio if manual underwriting is required
  • Non-Occupying Co-Signers allowed
  • Income Limits Apply (varies by County)
  • 105% Combined Loan to Value including assistance loans

Cal-EEM + Grant Loan Terms

  • FHA insured first mortgage
  • 30 year fixed rate term
  • High Balance FHA loan amounts allowed
  • Can be combined with ECTP - Extra Credit Teacher Program
  • Can be combined with a mortgage credit certificate - MCC
  • Can be combined with MyHome Assistance Program
  • Cal-EEM loans are not subject to a recapture tax

Repayment of the Cal-EEM Grant

  • If you stay in the home for a minimum of 3 years, the full amount of the grant is forgiven
  • If you leave the home before 3 years, the grant must be repaid on a pro-rated basis

Property Eligibility

  • Single Family Residence and HUD approved condos
  • Sales Price Limit - $660,000
  • Owner Occupied Only
  • Manufactured housing allowed with minimum 660 Credit Score
  • 1 Year Home Warranty (except new construction)

Minimum Home Warranty Coverage

  • Water Heater
  • Air Conditioning/Heating
  • Refrigerator, Oven/Stove/Range, Microwave, Washer/Dryer

More Assistance Options

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.

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