Borrowers with Home Energy Scores of 6 or Higher Qualify for Higher Loan Amounts

Specific Inspection Topics Thermal Imaging, Infrared Cameras & Energy Audits
#1

An announcement incorporating the Home Energy Score into FHA financing came out yesterday.
The initiative allows Single Family Energy Efficient Home borrowers to qualify for a higher loan amount when a home receives a Home Energy Score of 6 or higher.

You can read more about it in HUD’s guidance announcement and in the White House’s fact sheet on New Actions to Bring Renewable Energy and Energy Efficiency to Households across the Country.

Become a Home Energy Score Assessor(free & online for InterNACHI members).

#2

This is huge.

#3

The Federal government of the U.S. is promoting InterNACHI members.

#4

And there is only one source for the reporting software… InterNACHI.

#5

Looks like you still have to jump through a number of hoops to be able to perform these inspections

http://energy.gov/eere/buildings/home-energy-score-information-interested-assessors

Are you saying the gov approves the NACHI Home Energy Score Software?

#6

The hoops are easy for InterNACHI members. And everything is free and online. The training, the certification, the software, the quality assurance plan, etc. The Home Energy Score software is not accessible to everyone. You have to be an InterNACHI Home Energy Inspector. The Home Energy Score software is the DOE’s, accessible through InterNACHI’s partnership with the DOE.

#7

Great work as usual Ben!
Nick, your brother Ben is a great asset to NACHI!

Maybe a Canadian member can represent this Home Energy Score scheme to provincial and Natural Resources Canada.

#8

Quote from energy.gov web site:
“Once they have passed the test and are qualified to score homes, new Assessors must be accompanied by a “mentor” (a highly experienced professional) during their first home walk through.”

Where do we find one of them there mentors?

#9

Michelle Thakur will help you with the QA plan in your area. Contact michelle@internachi.org

#10

Thanks - Will Do :smile:

Chuck Boldin
ChuMel LLC Home Inspections
Rochester Hills, MI
www.chumel.com

#11

This is fantastic. I perform energy audits in addition to home inspections, and this will be a great way to blend the services. The FHA loan rate increase will be a big selling point with some buyers around here. I don’t often comment on the forums . . . but this one gets a big 'ol thumbs up from me.

#12

It’s huge.

#13

This is an amazing benefit.
At least three important marketing avenues come to mind.

-New home builders (under $260?K)
-FHA lenders
-Realtors with a client using FHA

If I remember correctly, back in 09’-11’ roughly 90% of the loans were FHA. Much less now, don’t know that figure.

The qualifying loan increase seems to be 2%, and it seems to be a separate, Transferable! loan. That may not seem like much, but as a practicing REA I can attest that sometimes that’s the margin between a deal closing, or not. Any HI that can come in and save the day, change the positive outcome of a deal closing, through Financing no less, is a “DEAL MAKER”, and will be viewed favorably.

That is huge.

#14

FHA loan limits vary by location. For example, they are higher in the Sante Fe area, because the median home price is higher.

#15

I see this as a huge UPS as well. Ben, I’ve also seen you say that you can choose to sell it or give it away with your home inspections as a USP. My thought is to to that, but also try to sell it as a stand alone service. I think that the electric company around here does these energy audits for free. If that is the case, how would you sell it? Is there something different about this as opposed to the energy auditors?

#16

I would list the Home Energy Score with a high fee as a stand-alone. But there’s one reason for that. I would want to include a Home Energy Score for free with my home inspection service, and thereby, show incredible value.

Our company policy was not to schedule many small-fee stand alone services. Our goal was to pile on services (some “free,” some for additional fees) on top of our home inspection service.

I’m interested in offering Home Energy Score to my local neighborhoods by going door to door with InterNACHI-designed marketing, including door hangers. I’m interested in seeing what happens with that approach to selling this quick energy inspection to homeowners who are not considering selling their home.

#17

I am interested in that as well. But what would you tell someone who said “Why would I pay you $xxx, when I can call FPL and they will do it for free?”

#18

I understand what you’re asking. I’d say, “Call them.” Some of the best moves in business is to know when to say no. And the folks who ask that type of question are not my clients. Or, I need to work more on effectively communicating brand and value.

#19

Our electric company offers this service for free as well so I wouldn’t try to charge for this as a stand alone service. I think coupling it with a “move-in ready” inspection would be an incentive for the prospective home buyer/seller to hire you instead of your competition.

#20

So who would you market this to? A buyer or seller? I don’t see the benefit for buyers since they would hire you after they made the offer on the house meaning they already were approved for the amount of the house.