My name is Jeff Cole, and I am the founder of myEnergyLoan, the nation’s leading green lender.
I’d like to tell you about my company’s financial incentive program for your green renovation. You probably can save thousands of dollars on closing costs and possibly even receive a lower interest rate on your permanent financing if you finance your project with myEnergyLoan!
You have found the right renovator in Renewal Construction – a myEnergyLoan preferred green renovator that builds to EarthCraft House, USGBC and EnergyStar standards.
Peter, David and the rest of the RCI team recommend myEnergyLoan because we close loans and provide their clients with high-touch service and hard-core savings. We understand green building and work to maximize the financial credit you receive for each and every energy feature in your project.
Why not call me at 404-771-2106 for an evaluation? If our services are right for you then I will ask you to fill out an application online at www.myenergyloan.com. Within 24 hours you will know your options, the cost of financing the improvements and your projected myEnergyLoan discount.
On average, we save myEnergyLoan borrowers a half-point on their loan package, but we sometimes provide as much as a full point credit at closing – just for building green and financing green with myEnergyLoan.
Warm Regards,
Jeffrey L. Cole
President
myEnergyLoan
404.771.2106
www.myenergyloan.com
myEnergyLoan – Closing the sustainability loop with your Closing.
Green Lending Made Simple with myEnergyLoan
The Four Stages of Construction Loan Approval
1. HERS Rating for myEnergyLoan Discounts
The best way to save with a myEnergyLoan is to have your house rated by a certified HERS (Home Energy Rating System) rater. The HERS report creates a baseline by which we can establish a fair discount structure. With a HERS rating we can extend credits up to one full percentage point. Without a HERS rating we will need to make a judgment that might not take into consideration all of the energy features and the impact made by each feature. A standard myEnergyLoan discount is a half-point paid at closing as a broker credit or rate buy-down according to your wishes. We consider all green building program certifications as we establish the maximum myEnergyLoan discounts.
Calculating your mortgage loan is an important part of the renovation process. Click here for calculators that can help you get started. |
2. Credit Approval
We qualify you normally as a borrower based on your credit, assets and income. This is a very simple process and can be completed over the phone, using the online application or in person. Applicants usually receive a basic credit approval within a few hours and a Good Faith estimate within 24 hours. Go to www.myEnergyLoan.com and click on Apply Now. This will link you to our mortgage company application area where you can proceed. For loan officer select myEnergyLoan or Other and your application will be sent directly to a myEnergyLoan specialist. You may inquire directly at 404-771-2106 or at 703-549-3400 for operator assistance.
3. Contractor Acceptance
Your mortgage lender asks your builder/contractor to complete a full profile questionnaire, provide proof of a general contractor’s license, and proof of a general liability policy. We then check your builder’s references and personal credit report to verify a previous track record of managing budgets. Your mortgage lender has already completed this step with Renewal Construction, which allows for a shorter process and the efficiencies inherent in a strong working relationship. Renewal Construction is a qualified green builder that enjoys preferred builder status with myEnergyLoan.
4. Project Approval
Upon receipt of your plans/specs, a budget/cost breakdown, and an executed contract, we can have an appraisal ordered. At that point, you are approximately four to six weeks from closing. (But budget eight weeks these days since the markets have tightened.) Once the appraisal comes back to us, our project review team reviews all materials to make sure that the costs appear reasonable and nothing is missing. At this point the entire loan package is underwritten and prepared for closing.
Your myEnergyLoan specialist stays in the picture during the entire time until your loan closes, ensuring that maximum value is given to energy upgrades and features. It is impossible to calculate value except by a licensed appraiser if your loan is going to be financed as a myEnergyLoan, and not all appraisers are versed in emerging green building technology. myEnergyLoan has established a network of appraisers with knowledge of green building features and valuations; however myEnergyLoan does not warrant any appraiser valuations, in accordance with RESPA law.
Preparing for Financing
Here is a checklist of information to have available for meeting with your mortgage lender and/or loan officer:
• Credit/full documentation.
• Two years of residency history and work history, including addresses and contact information.
• Last two years’ W-2s (or tax returns if self-employed).
• Most recent 30 days’ worth of pay stubs.
• Most recent two months’ complete statements for any asset accounts (checking, savings, 401k, brokerage accounts, IRAs, etc.). Include all pages and include a page of explanations for any irregular/large deposits.
• Written explanations of any known credit issues – late payments, collections, fraud, etc.
• Current mortgage statement(s).
• Project specifics
• Full floor plan of proposed project.
• Elevation views of all sides of proposed project.
• Project budget/cost list.
• Executed contract with builder/contractor.
It is not mandatory that you have all of this information available prior to contacting myEnergyLoan, but the more you are able to prepare, the easier everything will go. You may call directly at 404-771-2106 or at 703-549-3400 for operator assistance.
Basic Construction Project Financing Options
Cash/Credit
This is the first source most people consider when evaluating their construction project. If you have the savings or available credit to finance your project on your own, then you have total control over the project and will work in tandem with Renewal to provide draws as requested.
This is a very simple option, but I strongly encourage you to consider your other financing options in order to make the most informed decision. If you have the ability to pay for the project (or any portion of it), then you will most likely also have the ability to qualify for financing, regardless of the size of your project. Always consider your options.
Home Equity
Depending on the size of your current mortgage with relation to the current value of your home and to the estimated value of your home after the completion of the project, you may be able to finance your construction project through either of two options:
• Cash-Out Refinance. This is a simple refinance that allows you to tap into the existing equity of your home. In this scenario, you would essentially increase your existing mortgage in exchange for a lump sum of money at closing. As a general rule of thumb, cash-out refinances are limited to 75 percent of the current appraised value of your home. For example, if your home is currently worth $200,000, and you owe about $100,000, then you would be able to do a cash-out refinance resulting in a new mortgage balance of $150,000 and approximately $50,000 at closing to fund your construction project.
• Home Equity Line of Credit/Home Equity Loan. This also is considered a simple refinance. In this scenario, you would establish a second mortgage on your home for the purpose of financing your project. There are two different Home Equity programs. The first one, a Home Equity Line of Credit (HELOC), is a 30-year-term second mortgage with a rate that is tied to the Prime Rate as it is reported in the Wall Street Journal. This option is a lot like a credit card tied to your home. The rate can fluctuate with the Prime Rate, but the advantage is that for the first 10 years, you are only required to make interest-only payments.
After the initial 10 years, you would then repay the outstanding balance as a 20-year principle-and-interest loan with an adjustable rate. This is the option that provides the lowest payment. If this is too risky for you, then you could establish a Home Equity Loan instead. This loan allows you to have a fixed-rate second mortgage with terms of 10 years, 20 years or 30 years. This option is a lot like a standard car loan tied to your home. The rate and payments are fixed for the duration of the loan.
Construction to Permanent Loans
This is the most popular and most frequently used option when it comes to financing your construction project. The reason: in most circumstances, it allows a borrower to finance the construction loan based on the improved value of the home. In other words, your loan would be based on a “Subject to Appraisal” – an appraisal that reflects a new value based on the work to be completed.
The only case where this may not be true is if you have owned the home for less than 12 months. In this scenario, the construction loan would be based on the acquisition cost of the home plus the actual cost of construction. This difference is especially important when confronting a higher-cost project and/or a higher-valued home. That said, your mortgage lender is still able to make loans on a case-by-case exception basis, and your loan officer will do everything possible to get your loan structure to your advantage and approved.
Green lending services are provided by myEnergyLoan. Visit www.myenergyloan.com for great savings on your energy-efficient home loan.