Are you taking advantage of Fannie Mae’s limited time offer to reimburse 100% of the cost of your green report?
Fannie recently announced that from now until May 20th, they will cover the cost of your water and energy audit report whether or not your project qualifies for a green loan, so long as the loan closes with Fannie Mae. In other words, you’ve got no reason NOT to order an efficiency audit on a Fannie Mae loan!
Fannie announced this promotion because they believed that borrowers were hesitant to go green due to the difficulty and expense of the new green loan efficiency requirements. By providing a free look, borrowers can make that determination without the cost obligation of paying for the report.
Are the new requirements too tough? Not in our experience. The new requirements, a minimum of 15% energy savings and a total of 30% combined energy and water savings, are not that expensive to meet, compared to last year’s requirement of 25% water savings. The costs to meet the goals have increased, but not as much as borrowers think.
Last year, to meet the water efficiency requirement, borrowers often relied on water-saving toilet installations—an expensive and unpopular measure. Now they are implementing smart thermostats and lighting upgrades, in addition to cost-effective upgrades like low-flow showerheads and kitchen/bathroom faucets which provide both water and energy savings due to the reduction in hot water heating. Smart irrigation systems are another way to save energy. With all these options available, borrowers are reaching the energy and water efficiency goals.
After the May 20th deadline, you can still expect green report reimbursement for Fannie Mae loans that qualify for the green program. Freddie Mac offers reimbursement up to $3,500 whether or not your project qualifies. Call your Partner representative for more information.
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