Energy Efficient Mortgages Limits Raised by the FHA.
Energy Efficient Mortgage (EEM) is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the 
opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.
Before the FHA raised the limits of the Energy Efficient Mortgages, FHA EEMs allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already approved mortgage loan (as long as the additional costs do not exceed $4000 or 5 percent of the value of the home, up to a maximum of $8000, whichever is greater). The new changes allow for energy improvements are now the lesser of 5% of:
The value of the property
115% of the median area price of a single-family dwelling
150% of the Freddie Mac conforming loan limit, or $625,500
Under these changes, the maximum increase in an FHA-insured mortgage for energy improvements could be as much as $31,275 in high-cost areas.
There are many requirements for qualification of this Energy Efficient Mortgage (EEM), but for those serious about buying an Energy Efficient Home, these new changes could be very beneficial. Please refer to the following website for further details http://www.hud.gov/offices/hsg/sfh/eem/eemhog96.cfm
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