What I have learned in 18 years of actually doing Energy Efficient Mortgages
I have often heard it said lately by some of the people involved in this process who do not actually interact with buyers in the home buying process, that this program is not something that buyers are going to generally agree to include in their purchase financing. This is very contrary to my personal experiences.
With almost 20 years of offering the EEM program, Promoting the EEM Program, Teaching the EEM Program, and structuring other programs for buyers to leverage this opportunity, I have learned a few things that people who don’t actually use the program may not know. I am now going to tell you what works for me personally. In effect, I am going to let you peek behind the curtain.
First, why does every buyer I sit down with and explain this program to jump at the opportunity to use it? That’s very simple. It is because contrary to what all of the academics and theoretical experts always seem to represent, buyers are smarter than they think. They are capable of grasping concepts even if they involve a couple of steps. In the manner I present this program they are they are being offered an opportunity to make their home more comfortable, dependable, and affordable. An anxious and nervous home buyer is very interested in the issues that relate to the house they are buying and the financial advantages this program offers them.
To make this much easier for everyone, I included a couple of videos that show the interaction I have with my clients and specifically how I present this opportunity to them.
Introduction to Energy Efficient Mortgages for Home Buyers
Energy Efficient Mortgage Process after Buyer’s Offer is Accepted
Energy Efficient Mortgage Program Testimonial
I can tell you that I have always slept better at night knowing that I had created a means for my clients to enhance the comfort of their home and avoid situations that could be financially devastating to their families. I am also firmly convinced that the default ratio is reduced drastically when buyers are allowed to feel that they have altered the home they purchased in a significant way. This clearly enhances their emotional attachment to the property.
HUD has not really tracked the performance of the loans that included an EEM against those that didn’t. They do however track the performance of loans by loan officer. I can tell you with total confidence that it is not coincidental that while I have done a significant percentage of my FHA loans for clients in the lower income demographics that traditionally have higher default rates, the default rate on the loans I have personally originated is extremely low in relation to the overall performance of FHA loans. I will not say that the EEM program is the only reason for this but I am certain it has played a significant role.
Sacramento 1st DBA Comstock Mortgage – Lic : 01390474
Kevin Nunn – NMLS 305826 / DRE 01158674
