Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection c has been changed to delete references to “CRV.”

a. What are EEMs?

EEMs are loans to cover the cost of making energy efficiency improvements to a dwelling.  They can be made in conjunction with

·   a VA loan for the purchase of an existing dwelling, or

·   a VA refinancing loan secured by the dwelling.

Acceptable energy efficiency improvements include, but are not limited to

·   solar heating systems, including solar systems for heating water for domestic use

·   solar heating and cooling systems

·   caulking and weather-stripping

·   furnace efficiency modifications limited to replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights

·   clock thermostats

·   new or additional ceiling, attic, wall and floor insulation

·   water heater insulation

·   storm windows and/or doors, including thermal windows and/or doors

·   heat pumps, and

·   vapor barriers.

b. Requirements

Funds for energy efficiency improvements are considered part of the total loan, which must be secured by a first lien.

If the labor is to be performed by the veteran, the loan increase will be limited to the amount necessary to pay for materials.