I assume you mean EIFS ("Exterior Insulation Finish System") which is a synthetic polymer based stucco-like finish over polystyrene foam board. Like most building systems it has too many variations to be discussed in general terms.

It can have a soft or hard cost finish, extruded or expanded foam board, different kinds of drainage planes behind it or nothing and, of course, the most important factor is the climate.

Since you haven't mentioned any of these important factors there is not much to say except that this system can be a total disaster in a humid climate if there is no drainage plane behind the foam board and a poor quality air/weather barrier is used over regular OSB wall sheathing.

Deterioration can be greatly accelerated if the top of the wall, the tops of the windows, and the window sills are not properly detailed to prevent water intrusion.

Thanks for correcting me. We are getting EIFS siding. I was told it was the new water drainage system versus barrier. I noticed after the fact that EFIS is not a popular choice where I live mostly brick and stone. I have read more negative posts on the internet than positive ( that could be related to the older system management system). I wanted to know if there were any new home owners that recently utilized EIFS on the build of their new house and have they had any problems? Also, should the installer be certified and does EIFS come with a warranty for any possible issues?

Properly installed and detailed, EIFS is a robust system for all climates, according to the leading expert in diagnosing EIFS problems Dr. Joseph Lstiburek.

However, it is easily mechanically damaged from simple things such as just bouncing a basketball on the wall once.

Here is a link that might be useful: EIFS Problems and Solutions

You might want to ck with your insurance company, some will not insure or charge you allot more!

Thanks... is EIFS considered a cheap way to build a home? I went with the flow when we picked to go with EIFS. It seems to be a better quality than plastic siding.

Price depends where you are. In much of the US, I believe it is considered a lower end product and priced accordingly. Where I am, in Toronto, Canada, it is priced on par with installed brick. There is no cheap reservoir of undocumented construction workers here.