Fannie Mae Green Rewards Loan

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Terms

Description
Provides lower pricing, additional loan proceeds, and a free Energy and Water Audit Report to finance smarter, greener property improvements. Eligible improvements include new ENERGY STAR® appliances, energy efficient HVACs, low flow toilets, LED Lighting, and more.

Benefits
Lower interest rate, free energy and water audit report, up to 5% more loan proceeds, increased net cash flow by underwriting projected energy and water cost savings, no minimum investment per unit, attract more investors with the market’s only Green MBS.

Eligibility
All Asset Classes (excluding Manufactured Housing Communities) with at least 12 months of Stabilized Residential Occupancy; a Manufactured Housing Community is not eligible. Property owner must commit to property improvements that are projected to reduce the whole property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be attributable to projected savings in energy consumption. Improvements must be installed within 12 months of loan origination. Properties may be located anywhere in the U.S. Only Green Rewards loans that are projecting greater than 5% additional loan proceeds are Pre-Review.

Lien Priority
First lien loans, supplemental loans, and second supplemental loans. For a second supplemental, 100% of the loan proceeds must go towards green improvement costs.

Availability of Additional Loan Proceeds
Up to 5% more than a conventional (non-green) DUS Loan.

Energy and Water Audit Report
100% paid by Fannie Mae. Report scope equivalent to ASHRAE Level 2 Energy Audit. Loan must close as Green Rewards.

Underwriting
75% of the owner and 25% of the tenant projected energy and water cost savings may be included in the Underwritten Net Cash Flow.

Execution Options
Green MBS

Term
5 to 30 years

Interest Rate
Fixed and variable rate options available.