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PublishedSeptember 29, 2026Where our VA figures come from
Illustration for the VA guide: The VA Energy Efficient Mortgage (EEM)
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Loan Programs5 min read · Updated for 2026

The VA Energy Efficient Mortgage (EEM)

How the VA Energy Efficient Mortgage lets eligible borrowers add the cost of documented energy improvements to a VA loan, the dollar tiers, and what documentation is required.

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Quick answer

How does a VA Energy Efficient Mortgage work?

A VA Energy Efficient Mortgage adds the cost of documented energy-efficiency improvements to a VA purchase or refinance loan. Up to $3,000 is allowed with documented costs, up to $6,000 when the added monthly payment does not exceed the expected energy savings, and more than $6,000 only with a VA value determination. Lender participation varies.

  • EEM adds improvement costs on top of the purchase or refinance amount
  • Up to $3,000 with documented costs
  • Up to $6,000 when the payment increase is offset by energy savings
  • Above $6,000 requires a VA value determination
  • Not every lender offers EEMs — this is general program information
What this means for your mortgage

Documented efficiency upgrades can be added to a VA loan within VA's tiers, where a lender participates.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified September 29, 2026 against the VA Lenders Handbook (M26-7)

See VA loan programs

Published:

Short answer: A VA Energy Efficient Mortgage (EEM) adds the cost of documented energy-efficiency improvements to a VA purchase or refinance loan. VA's tiers: up to $3,000 with documented costs; up to $6,000 when the added monthly payment does not exceed the expected energy savings; above $6,000 only with a VA value determination.

> Educational program information only. Lender participation in the VA EEM varies, and this page is not an offer of the product.

The dollar tiers

Improvement amountVA requirement
Up to $3,000Documented cost of the improvements
$3,000 – $6,000Increase in monthly payment may not exceed the likely reduction in monthly utility costs
Over $6,000Subject to a VA value determination

Examples of eligible improvements

  • Insulation, caulking and weather-stripping
  • Energy-efficient windows, doors and storm windows
  • Heating, cooling and water-heating system upgrades
  • Solar heating or cooling systems

What documentation is typically needed

An energy audit or assessment and contractor bids that itemize each improvement. Your lender explains its exact documentation and completion requirements.

Related: VA renovation loan guide · VA appraisal and MPRs

Sources: 38 U.S.C. 3710(d); VA Lenders Handbook M26-7, Chapter 7 (Loans Requiring Special Underwriting, Guaranty and Other Considerations), Energy Efficient Mortgages; VA.gov home loans.

Frequently asked

How much can a VA EEM add to my loan?

Up to $3,000 based on documented costs; up to $6,000 when the added monthly payment does not exceed the likely reduction in utility costs; amounts above $6,000 are subject to a value determination by VA.

What improvements qualify?

Energy-efficiency improvements such as insulation, weatherization, energy-efficient windows and doors, heating and cooling upgrades, and solar systems, supported by documentation such as an energy audit or contractor bids.

Does every lender offer the VA EEM?

No. It is a VA program feature, but lender participation varies. Ask a licensed loan originator whether it is available for your scenario.

Ready to see what you qualify for?

Start a VA pre-qualification with a licensed loan originator. Licensed in Colorado and Florida.

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SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.

Hi — I'm SAM with Simply Approved Mortgages. Ask a question about Va Energy Efficient Mortgage, or pick one of the popular questions beside this box.

General information only — not advice, a quote, or an offer of credit.

AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.

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