The FHA Energy Efficient Mortgage Program (EEM) allows borrowers to finance the entire cost of eligible efficient improvements, up to a certain dollar amount. Ideal for borrowers looking to use a Streamline 203k because it increases the amount you can spend on improvements while taking advantage of the lower costs of a Streamline loan. This could mean stretching the $35,000 limit to include a new heater, double pane windows, etc. Energy improvements need to be cost-effective; meaning the total cost of the improvements must be less than the cost of the energy saved. The dollar limit set for improvements is $4,000, or 5% of the property value up to $8,000, whichever is greater. The cost of the energy saved can be evaluated by an energy consultant or a Home Energy Rating System (HERS), and the cost of the evaluation can be written into the mortgage as well.