GREEN LOAN PROGRAM

 

NATIONWIDE: We perform water fixture installations to satisfy Green Loan requirements.

  • Borrower must commit to installing capital improvements that target a 15% or more reduction to the whole property's annual energy or water use

  • Must be workforce housing built in 2000 or earlier (2002 for tax credit properties)

  • $350/unit minimum green improvement budget

  • Improvements must be installed within 30 months of loan origination

Freddie Mac Green Loan Qualifications

Save on your water bill with Freddie Mac

 
  • Borrower must commit to installing capital improvements that target a 20% or more reduction to the whole property's annual energy or water use

  • Eligible for conventional and affordable housing

  • No minimum green improvement budget

  • Improvements must be installed within 12 months of loan origination

Fannie Mae Green Loan Qualifications

Save on your water bill with Fannie Mae

 

THE OPPORTUNITY

-- Financial

  • Lower credit risk because of higher cash flows

  • Higher property value from green improvements or Green Certification

-- Social

  • Lower utility bills mean greater affordability for tenants

  • Healthier, higher quality, more durable housing

-- Environmental

  • Lower use of energy, water, and natural resources

  • Greater resiliency to natural disasters

  • Properties built 2002 and before

  • Properties with debt coming due

  • Looking for extra loan proceeds or better rate on existing debt

  • To finance capital improvements upon refinance

  • Value-add acquisitions 

Green Lender Value Proposition
Ideal Fit for Green Rewards

FINANCIALS 

-- Lower interest rate

  • Fixed rate of reduction of 13-39 basis points depending on loan size, LTV and DSCR

-- Up to 5% more loan proceeds than a conventional (non-green) DUS loan

  • Additional loan proceeds are determined by the underwritten increase to net cash flow

 -- Fully financed, energy efficient capital improvements

Green Loan Financial Merits

-- Lower monthly debt service from preferential loan pricing 

-- Additional loan proceeds allow owners to put money in their pockets immediately (i.e. reduce equity position)

-- Increased net cash flow from utility cost savings

-- Greater property (resale) value driven by increase to net cash flows

-- Limited risk with immediate return of capital

Direct Value Added to Owner