Veterans Administration Energy Mortgage Program

Program Summary

Purchase & Refinance

Improvement Financing:
100% of the energy improvements subject to the following limits:

(a) Up to $3,000 based solely on documented costs

(b) Up to $6,000 provided that the home energy rating projects the reduction in monthly energy savings exceed tje increase in the monthly mortgage payment

Down Payment: 
No additional down payment on the energy improvements if the improvements can create positive cash flow

Loan Limits: 
The total loan amount after adding the costs of the energy improvements can not exceed VA loan limit

Loan to Value:
Final LTV may exceed 100% appraised value if energy improvement measures have positive cash flow

Eligible Improvements:
All improvements identified by home energy rating as having a combined cost-effectiveness

Installation Time Limit 
180 days

Necessary Documentation 
Home energy rating; Contractor bids, Certificate of Reasonable Value (VA Form 26-1842, Box 13); Loan Analysis Worksheet, (VA Form 26-6393, Boxes 20 & 48); Report & Certification of Loan Disbursement (VA Form 26-1820)