Energy Efficient Mortgage Worksheet
STEP 1: QUALIFYING THE BORROWER
The borrower must be qualified for the mortgage amount before
adding the cost of energy efficient improvements to the mortgage.
To show that the borrower qualified for the mortgage amount, show
the borrower qualifying ratios on the mortgage by completing the
worksheet below.
| 1. |
Enter the amount from line
14g of the HUD 92900-WS |
$__________ |
| 2. |
Estimated upfront MIP for
amount on line 1, above. |
$__________ |
| 3. |
Sum of line 1 and 2, above: |
$__________ |
| 4. |
Monthly payments based on
mortgage amount from line 3, above. |
$__________ |
| |
a) Estimated PITI and
monthly MIP |
$__________ |
| |
b) Estimated
PITI, monthly
MIP, and recurring expenses (total fixed) |
$__________ |
| 5. |
Qualifying ratios using
mortgage amount before adding cost of energy efficient
improvements |
|
| |
a) Mortgage payment to
income ratio |
_____.____% |
| |
b) Total fixed payment to
income ratio |
_____.____% |
STEP 2: ADDING THE COST of ENERGY EFFICIENT ITEMS to THE
MORTGAGE AMOUNT
If the borrower is an acceptable credit risk for the mortgage
amount requested before adding the cost of the energy efficient
items, complete the worksheet below to determine if the cost of
the energy efficient improvements may be added to the mortgage
amount.
| 1. |
Mortgage Interest Rate |
_____.____% |
| 2. |
Expected Useful Life (years)
|
__________ |
| 3. |
Present Value Factor (from chart) |
_____._____ |
| 4. |
Expected Monthly Savings |
$__________
x 12
|
| 5. |
Expected yearly savings
- Minus expected yearly maintenance
- =Net Yearly Savings
|
$__________
$__________
$__________
|
| 6. |
EE Premium (Net Yearly
Savings x Present Value Factor) = (Present Worth of
Estimated Savings) Net YR Savings $___________ x
____________ PV = $ EE
|
$__________ |
| 7. |
Installed Cost
Compare EE
Premium to Installed Cost:
|
$__________ |
| 8. |
If EE Premium (line 6) is
less than installed cost (line 7), the energy efficient
items may not be financed into the mortgage.
If EE Premium (from line 6) exceeds installed cost
(line 7), answer the following questions to determine the
amount that may be added to the mortgage amount:
|
|
| |
Does installed cost (line 7)
exceed $4,000? |
___Yes___No |
| |
If NO, show installed cost
line 7) here and add to base mortgage amount. |
$__________ |
| |
If YES (installed cost
exceeds $4,000), does installed cost exceed 5 percent of
the appraised value of the property? |
___Yes___No |
| |
If NO, show the lesser of
8,000 or the installed cost (line 7) here and add to base
mortgage amount. |
$__________ |
| |
If YES (installed cost
exceeds 5 percent of appraised value), show the lesser of
$8,000 or 5 percent of the appraised value here and add
to the base mortgage amount. |
$__________ |
The amount calculated above is the maximum amount that may be
added to the mortgage previously calculated on line 14g of the
HUD-92900-WS, Mortgage Credit Analysis Worksheet. Line 6a, 6b,
and 6c of the analysis worksheet will reflect the addition of the
EE premium in the new mortgage amount. Be certain to identify in
the "Remarks" section of the worksheet why the final
mortgage exceeds the line 14g and also show the revised loan to
value ratio and borrower qualifying ratios for the higher
mortgage amount. A copy of this Attachment B must be attached to
the worksheet. The upfront MIP must be calculated on the mortgage
amount including the energy efficient improvements.
The following example shows a completed HUD 92900 Mortgage
Credit Analysis Worksheet and an Attachment B for an EEM. In this
case the property is valued at $70,000 and the borrower wishes to
install $2,000 of energy efficient improvements that have a
useful life of 10 years. The energy efficient improvements will
save $30 per month in utility costs, but the improvements will
also have estimated yearly maintenance costs of $60. The interest
rate of the mortgage is 8% for 30 years.
Example
Attachment B
ENERGY EFFICIENT MORTGAGE WORKSHEET
STEP 1: QUALIFYING THE BORROWER
The borrower must be qualified for the mortgage amount before
adding the cost of energy efficient improvements to the mortgage.
To show that the borrower qualified for the mortgage amount, show
the borrower qualifying ratios on the mortgage by completing the
worksheet below.
| 1. |
Enter the amount from line
14g of the HUD 92900-WS |
$_67,000___ |
| 2. |
Estimated upfront MIP for
amount on line 1, above. |
$__2,010___ |
| 3. |
Sum of line 1 and 2, above: |
$_69,010___ |
| 4. |
Monthly payments based on
mortgage amount from line 3, above. |
|
| |
a) Estimated PITI and
monthly MIP |
$___594____ |
| |
b) Estimated
PITI, monthly
MIP, and recurring expenses (total fixed) |
$___700____ |
| 5. |
Qualifying ratios using
mortgage amount before adding cost of energy efficient
improvements |
|
| |
a) Mortgage payment to
income ratio |
___28.2___% |
| |
b) Total fixed payment to
income ratio |
___33.3___% |
STEP 2: ADDING THE COST of ENERGY EFFICIENT ITEMS to THE
MORTGAGE AMOUNT
If the borrower is an acceptable credit risk for the mortgage
amount requested before adding the cost of the energy efficient
items, complete the worksheet below to determine if the cost of
the energy efficient improvements may be added to the mortgage
amount.
| 1. |
Mortgage Interest Rate |
____8.0___% |
| 2. |
Expected Useful Life (years)
|
_10 Years___ |
| 3. |
Present Value Factor (from chart) |
___6.710___ |
| 4. |
Expected Monthly Savings |
$____30____
x 12
|
| 5. |
Expected yearly savings
- Minus expected yearly maintenance
- = Net Yearly Savings
|
$____360___
$____-60___
$____300___
|
| 6. |
EE Premium (Net Yearly
Savings x Present Value Factor) = (Present Worth of
Estimated Savings) Net YR Savings $__300__
x __6.710__
PV = $ EE
|
$___2013___ |
| 7. |
Installed Cost
Compare EE
Premium to Installed Cost:
|
$___2000___ |
| 8. |
If EE Premium (line 6) is
less than installed cost (line 7), the energy efficient
items may not be financed into the mortgage. If EE
Premium (from line 6) exceeds installed cost (line 7),
answer the following questions to determine the amount
that may be added to the mortgage amount: |
|
| |
Does installed cost (line 7)
exceed $4,000? |
___Yes_x_No |
| |
If NO, show installed cost
line 7) here and add to base mortgage amount. |
$___2000___ |
| |
If YES (installed cost
exceeds $4,000), does installed cost exceed 5 percent of
the appraised value of the property? |
___Yes___No |
| |
If NO, show the lesser of
8,000 or the installed cost (line 7) here and add to base
mortgage amount. |
$__________ |
| |
If YES (installed cost
exceeds 5 percent of appraised value), show the lesser of
$8,000 or 5 percent of the appraised value here and add
to the base mortgage amount. |
$__________ |
The amount calculated above is the maximum amount that may be
added to the mortgage previously calculated on line 14g of the
HUD-92900-WS, Mortgage Credit Analysis Worksheet. Line 6a, 6b,
and 6c of the analysis worksheet will reflect the addition of the
EE premium in the new mortgage amount. Be certain to identify in
the "Remarks" section of the worksheet why the final
mortgage exceeds the line 14g and also show the revised loan to
value ratio and borrower qualifying ratios for the higher
mortgage amount. A copy of this Attachment B must be attached to
the worksheet. The upfront MIP must be calculated on the mortgage
amount including the energy efficient improvements.
Mortgage Credit
Analysis Worksheet
*************************************************************
GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED*
form HUD-92900-WS (10/92)
ref. handbook 4155.1
