Energy Efficient Mortgages

[James Samsing]

Has anyone worked with a lender who has actually closed an FHA, VA or Conventional Energy Efficient Mortgage? Interested in flipping a home that would qualify based on HERS rating + energy savings and would like to partner with a lender to market the property as eligible for EEM. But its seems like these products are imaginary programs that people have heard of but nobody has actually done one.

[Ty Coutts]

Hi James,

We at Aslan do these types of mortgages, however there are some limitations for most lenders.

For FHA, VA, and Conventional Energy Efficient Mortgages the property must be occupied as the borrower's primary residence, so they are not eligible for investment properties. Most lenders, will not be able to do this as from your post it does not seem like you are looking to use this property as your primary residence. However, we do have a large breadth of products at Aslan Home Lending, and we will be able to find something that would work for you, although it may not be exactly what you are looking for.

Let me know if you would like to discuss further! 

[James Samsing]

This would be for the buyer of a property I am flipping (100+ day hold time so FHA eligible). As the seller I would pay for the energy audit, do the analysis on the work to be done (cost vs savings) and then market the home with a prepackaged improvement contract that would meet lender guidelines (solar, EE windows, etc). 45 day close to allow for enough time to do loan and obtain permits, occupancy COE+2. Buyer closes on Thursday, work is completed on Friday, buyer moves in Saturday. If it works it would eliminate most appraisal gap concerns and I would earn extra margin on the post-closing repairs. I am only interested in working with a lender who has closed these loans and knows the guidelines/overlays. I don't want to go through this process only to be denied 30 days into an escrow period because the lender missed something. This would be a nice win for the lender since I would mandate prequals on the properties. 

[Ty Coutts]

Hey James,

I completely understand the concern, I would want to work with someone who understands the guidelines well, as they are extensive. Rest assured, we have done many of these loans in the past, and I am completely confident in my ability to help your future buyers. Lets schedule a call for sometime this week. Feel free to message me directly or get my email/phone number from my profile.