FHA EEM Program

FHA Energy Efficient Mortgage (EEM) Nevada Guide

Finance energy upgrades like solar panels, HVAC systems, and insulation with your FHA home loan in Nevada. Learn EEM benefits, eligible improvements, how to qualify, and maximize energy savings for Las Vegas and Reno homes.

9 min read
Updated December 2024
By Sarah Martinez, FHA Specialist

Key Takeaway: FHA's Energy Efficient Mortgage (EEM) program lets Nevada homebuyers finance up to $8,000 in energy-saving improvements—solar panels, new HVAC, insulation—directly into their FHA loan. In Nevada's desert climate with 310+ sunny days, solar installations can dramatically reduce utility bills while the upgrades cost nothing out-of-pocket at closing.

What is an FHA Energy Efficient Mortgage?

The FHA EEM program allows you to roll the cost of energy-efficient improvements into your mortgage. Instead of paying thousands upfront, you finance upgrades that:

  • Lower monthly utility bills (especially crucial in Nevada summers)
  • Increase home value and energy efficiency ratings
  • Require no additional down payment beyond standard FHA 3.5%
  • Don't affect your debt-to-income ratio calculation

How Much Can You Finance?

Standard EEM Limit
Up to $8,000

For most energy improvements without additional appraisal requirements

Maximum EEM Limit
Up to $20,000

With energy audit showing cost-effective improvements (5% of home value, up to 150% of FHA loan limit)

Eligible Energy Improvements for Nevada Homes

FHA EEM funds can be used for energy upgrades that meet HUD guidelines. Here are the most popular choices for Nevada homeowners:

Solar Panels

Nevada's 310+ sunny days make solar ideal. Typical 5kW system costs $12,000-$15,000, saves $100-150/month on electric bills.

Avg. Payback: 7-9 years

High-Efficiency HVAC

Critical for Las Vegas summers. New 16+ SEER AC unit costs $5,000-$8,000, reduces cooling costs 20-30%.

Avg. Payback: 5-7 years

Insulation & Air Sealing

Attic insulation upgrade ($2,000-$4,000) keeps heat out in summer, warmth in during winter months.

Avg. Payback: 3-5 years

Energy-Efficient Windows

Low-E double-pane windows reduce heat gain. Whole-home replacement $6,000-$12,000, cuts cooling costs 15-25%.

Avg. Payback: 8-12 years

Nevada-Specific Advantage

With Las Vegas and Henderson electric rates averaging $0.13-$0.15/kWh and summer temps reaching 110°F+, energy upgrades financed through FHA EEM often pay for themselves within 5-8 years through utility savings alone—while you enjoy lower monthly bills from day one.

How to Qualify for FHA EEM in Nevada

The qualification process is straightforward and runs parallel to your standard FHA loan approval:

1

Get Pre-Approved for FHA Loan

Standard FHA requirements: 580+ credit, 3.5% down, 43% DTI. The EEM amount doesn't count toward DTI.

2

Order Energy Audit (for >$8K upgrades)

HUD-approved home energy rater conducts assessment ($300-$500) to identify cost-effective improvements.

3

Get Contractor Estimates

Licensed Nevada contractors provide written bids for recommended energy improvements.

4

Close on Home with EEM Financing

Improvement costs added to loan amount. Funds held in escrow until work is complete.

Finance Energy Upgrades - Get Pre-Approved
FHA Energy Program

FHA Energy Efficient Mortgage (EEM) Nevada Guide

Finance solar panels, HVAC upgrades, and energy improvements with your FHA home loan in Nevada. Learn EEM benefits, eligible upgrades, how to qualify, and maximize energy savings for Las Vegas and Reno homes.

11 min read
Updated December 2024
By Sarah Martinez, FHA Program Specialist

Key Takeaway: The FHA Energy Efficient Mortgage (EEM) program lets Nevada homebuyers finance up to $8,000 in energy improvements directly into their FHA loan. Perfect for Vegas' desert climate—add solar panels, upgrade AC, install efficient windows, all with 3.5% down. Lower utility bills start day one while building equity.

What is an FHA Energy Efficient Mortgage?

The FHA EEM program allows you to include the cost of energy-efficient improvements in your FHA home loan. Instead of paying cash for upgrades, you finance them over 30 years at your low FHA rate.

How FHA EEM Works in Nevada

1

Get a Home Energy Assessment

A HERS rater inspects the Nevada home and recommends cost-effective energy improvements (typically $300-500 fee).

2

Improvements Added to Loan Amount

The cost of qualifying energy upgrades (up to $8,000 or 5% of home value, whichever is greater) is added to your FHA loan amount.

3

Upgrades Completed After Closing

Funds are held in escrow. Once improvements are done (usually within 90 days), contractors are paid from escrow.

4

Enjoy Lower Utility Bills

Your Nevada home now has reduced energy costs—often saving $50-200/month on utilities in Las Vegas summers.

Eligible Energy Improvements for Nevada Homes

Any improvement that reduces energy costs and pays for itself through savings qualifies. Popular Nevada upgrades include:

Solar & Desert Climate

  • Solar panels (rooftop systems)
  • High-efficiency HVAC systems
  • Cool roof coatings (reflect heat)
  • Solar water heaters

Insulation & Efficiency

  • Upgraded attic insulation
  • Energy-efficient windows & doors
  • Air sealing & duct improvements
  • Energy Star appliances

Nevada Climate Advantage

Las Vegas averages 310 sunny days per year—making solar panels especially cost-effective. A typical $6,000 solar investment via FHA EEM can reduce electric bills by $120-150/month, paying for itself in utility savings within 4-5 years while financed over 30 years at low FHA rates.

Finance Energy Upgrades with FHA EEM
Energy Efficiency

FHA Energy Efficient Mortgage (EEM) Nevada - Finance Green Upgrades

FHA Energy Efficient Mortgage (EEM) program in Nevada lets you finance energy upgrades like solar panels, HVAC systems, and insulation with your FHA home loan. Learn EEM benefits, eligible improvements, how to qualify, and maximize energy savings for Nevada homes.

11 min read
Updated December 2024
By Sarah Martinez, FHA Energy Specialist

Key Takeaway: FHA's Energy Efficient Mortgage (EEM) allows Nevada homebuyers to roll up to $8,000 (or 5% of adjusted value) into their FHA loan to pay for energy-saving improvements like solar, new HVAC, insulation, and efficient windows. Perfect for Las Vegas desert climate where cooling costs are significant.

What is an FHA Energy Efficient Mortgage (EEM)?

An FHA EEM is a special mortgage program that allows you to include the cost of energy-efficient improvements in your FHA home loan. This means you can:

  • Finance energy upgrades without increasing your down payment
  • Add up to $8,000 for cost-effective improvements (or 5% of home value, whichever is greater)
  • Start saving on utility bills immediately while building equity
  • Qualify more easily because energy savings offset higher payments

Eligible Energy Improvements for Nevada Homes

FHA EEMs can finance a wide range of energy-saving upgrades especially beneficial for Nevada's desert climate:

Solar Power Systems

  • • Solar panels (rooftop or ground-mount)
  • • Solar water heaters
  • • Battery storage systems
  • • Inverters and electrical upgrades

HVAC Upgrades

  • • High-efficiency air conditioning
  • • Energy Star certified heat pumps
  • • Smart thermostats
  • • Duct sealing and insulation

Insulation & Sealing

  • • Attic and wall insulation
  • • Air sealing/weatherization
  • • Radiant barriers (crucial in NV heat)
  • • Insulated garage doors

Windows & Doors

  • • Double or triple-pane windows
  • • Low-E window coatings
  • • Energy-efficient exterior doors
  • • Window films/tints

Nevada Energy Savings Potential

Las Vegas homeowners spend an average of $2,400/year on utilities. With EEM upgrades (solar + HVAC + insulation), you could reduce energy costs by 40-60%, saving $960-$1,440 annually. These savings often exceed the added mortgage payment from financing the improvements.

How Much Can You Finance with FHA EEM?

The FHA EEM program has flexible financing limits based on your home's value:

Standard Limit (No Appraisal)
For improvements under $8,000
$8,000
Higher Limit (Requires Energy Report)
5% of property's adjusted value OR $8,000 (whichever is greater)
Up to 5%
Finance Energy Upgrades with FHA EEM

Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA Energy Efficient Mortgages

FHA ENERGY PROGRAM

Finance solar & upgrades with your FHA loan

FHA's Energy Efficient Mortgage (EEM) lets Nevada buyers finance up to $15,000 in energy improvements—solar panels, AC upgrades, insulation—directly into your mortgage. Perfect for Nevada's desert climate with 310+ sunny days.

$15K
Max Financing
310
Sunny Days/Year
No Cash Needed

Why Nevada buyers use FHA EEM

Lower utilities: $150-250/month savings on electric bills
Increase home value: Solar adds 3-4% to resale price
Positive cash flow: Savings exceed mortgage payment increase

Solar, HVAC, insulation eligible • No upfront cash • NMLS #65506

Solar ROI Calculator

Nevada Example: $350K Home

Solar system cost $12,000

Financed into FHA mortgage

Monthly mortgage increase +$70

At 6.5% interest rate

Monthly electric bill savings -$200

Nevada solar average

Net monthly savings $130

Positive cash flow from day one

FHA Energy Programs

FHA Energy Efficient Mortgage (EEM): Finance Solar & Upgrades in Nevada

How FHA EEM lets you finance energy improvements like solar panels, HVAC, insulation with your mortgage. Learn eligible upgrades, cost limits, qualification for Las Vegas and Nevada homes.

9 min read
Updated December 2024
By Marcus Rivera, FHA Specialist

Key Takeaway: FHA's Energy Efficient Mortgage (EEM) program allows Nevada homebuyers to finance up to $15,000 in energy upgrades—solar panels, AC systems, insulation—directly into their FHA loan. In Nevada's desert climate, these upgrades pay for themselves through utility savings while increasing home value.

What is an FHA Energy Efficient Mortgage (EEM)?

The FHA EEM program lets you finance the cost of energy-efficient improvements into your FHA mortgage, either when purchasing or refinancing. The upgrade costs are added to your loan amount—no separate loan or upfront cash required.

How Much Can You Finance?

FHA allows you to add the lesser of:

  • Up to $15,000 without a cost-effectiveness analysis
  • Or up to 5% of home's appraised value (after improvements)
  • With energy audit: full cost if improvements save more than they cost

Example: $350,000 Nevada home × 5% = $17,500 max (or $15K without audit). With a certified energy audit showing $18K in solar panels will save $25K over loan life, you can finance the full $18K.

Eligible Energy Improvements for Nevada Homes

Nevada's extreme heat makes these upgrades particularly valuable:

Solar & HVAC

  • • Solar panels & battery storage
  • • High-efficiency AC units (SEER 16+)
  • • Heat pumps & ductless mini-splits
  • • Smart thermostats & zoning systems

Insulation & Sealing

  • • Attic & wall insulation (R-38+)
  • • Reflective roof coatings
  • • Energy-efficient windows (Low-E)
  • • Air sealing & duct repairs

Water & Lighting

  • • Tankless water heaters
  • • Low-flow fixtures (Nevada water scarcity)
  • • LED lighting systems
  • • Pool pump upgrades (Vegas homes)

Energy Systems

  • • Whole-home energy management
  • • Geothermal systems
  • • Wind turbines (rural Nevada)
  • • Energy Star appliances

Nevada Desert Climate Advantage

Las Vegas averages 310 sunny days/year—perfect for solar ROI. A $12K solar system on an FHA EEM can save $150-250/month on utilities, paying for itself in 4-5 years while your mortgage payment only increases ~$70/month. Net positive cash flow from day one.

Finance Your Energy Upgrades with FHA EEM