Home Mortgage Lending and Solar Energy |
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availability of financing borrower commercial banks domestic hot water downpayment economic energy conservation energy cost savings Federal FHA's FHLMC financing for solar FNMA gage heating system home builders home buyers home improvement homeowners hot water systems housing costs housing expense housing market impact increase insurance companies insurance programs interest rates involved issues LENDER CONCERNS lender put loan officers loan requests loan-to-value ratio market value Minimum Property Standards mort mortgage companies mortgage financing mortgage loans mortgage market multi-family overimprovement permanent mortgage PMI's private mortgage insurance problems purchase reflected relatively requests for solar residential solar energy retrofit installations rience risk savings and loan SECONDARY MARKET ENTITIES single family homes solar cost solar energy systems solar equipment solar first cost solar heated homes solar homes solar hot water solar installation solar retrofit solar space heating solar systems technical technologies thrift institutions uncertainty underwriting utility costs valuation warranty
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Page 25 - Intermediate Minimum Property Standards for Solar Heating and Domestic Hot Water Systems (S/MPS) 4930.2.
Page 25 - The field office must also determine that a ready market exists for the property with the increased cost of the solar equipment. The cost of this additional equipment may be recognized in value in an amount that can be demonstrated by an analysis of the market. Potential savings in operating costs are also a consideration in determining acceptability in the market. The solar collector must be located free from natural or man-made' obstructions and shall not adversely affect adjoining properties.
Page 27 - FHLMC's guide to its underwriters states that: "... properties varying from the norm should be reviewed carefully as to marketability, how well they fit into the neighborhood price structure, and their acceptability as to architecture and amenities offered. Those that are not typical may have market resistance and should be underwritten on a more conservative basis as to overall loan terms.
Page 6 - Source: Based on loan terms in the Boston area in March. 1976 Assumes that appraised value of system is same as full cost of $8,000 I.
Page 12 - Over time, of course, the market place will serve as the definitive arbiter of value, with the knowns, unknowns, virtues and liabilities of solar systems reflected in the price consumers are willing to pay for new and used homes that incorporate solar energy devices. But right now, and for the next few years, this information will be lacking in most markets, and lenders will have to proceed in the absence of any significant volume of experience in the sale of "comparable
Page 12 - What they wi 1 1 necessari ly consider— and what those promoting solar must consider— is the possibility that the market value of a solar installation (in terms of resale of the property) may be less than the costs associated with it, and that loans offered will therefore be a proportionally smaller part of the additional sales price.
Page 27 - These secondary entities perceive their basic public functions — ie, contributing to liquidity in the mortgage market and stabilizing the flow of capital into housing production — as necessitating a conservative stance towards underwriting the risks associated with unproven housing technologies
Page 4 - The availability of financing— and the terms on which it is made available— will exert a great influence on how well and how quickly solar energy systems are accepted in the general housing market.
Page 30 - Adjustments to ceilings in existing Federal mortgage insurance programs to accommodate the higher costs of solar homes.
Page 12 - The controlling factors here are that mortgage loans are made in relation to the value of the property offered as collateral, rather than its costs...