Special offer

FINDING Money for A LEED Certified/Green Built Home (Part III)

By
Education & Training with GLREA

In Part I and Part II , I told you about the ONE TIME CP LOAN.

I told you that the ONE TIME CP Loan  where all the loans are combined into one. You close ONE TIME. . .for the Land, the Construction Loan and the Final Mortgage.  Are all combined in your first approval. I spoke about the benefits:

Benefits:

  • You (or your clients) need not re-qualify following the completion of the
    home. 
  • A second application need not be taken.
  • You (or your clients) could lock the interest rate at the first closing

And I mentioned the appraised value financing model. Many  have faced the unfortunate situation that the borrower does not have the money to close on their "end" loan after construction is complete. This puts the builder in a very unfortunate situation of bargaining or taking the home  -- it also puts the homeowner in an extremely stressful AND uncomfortable situation.

Now I want to be sure to let you know that the CP Loan is not the end all be all --  things certainly happen -- but it does allow certain contingencies to provide the process goes smoothly and the homeowner can enjoy the new home they designed.

I am still working out the details of which lenders offer the best package to use for Energy Efficient Mortgages EEM's but in regards to Financing in Energy Efficient Improvements (EIM's). these are available to "ride" on a CP Loan to make it more attractive.  So, as I look at it, here’s what I see that can work for you and your clients:

  • One closing - saves time and money
  • Interest rate can be locked so if rates go up, they are locked at a lower rate. If rates drop (unlikely these days) they can take advantage of the rate drop.
  • No "re-qualifying" after the occupancy permit is obtained - a simple "modification" package modifies the loan amount the funds actually used
  • REALTORS® are paid at close.
  • Builder does not need to disclose financials, have proof of assets, have reserves, etc --  
  • Homeowners can keep their money in their investment product making hopefully making 10%+ and pay I/O on the draws -- they make money while they are building and normally come to the table with little if no money. 
  • If  builder owns the land, the builder can be paid for that at close. S/he walks away from the table with money before even breaking ground.

In today’s market where the trend I toward healthy-built homes , sustainable design and planning, I am very excited a bout the ONE TIME CP Loan. If you have questions about it, be sure to let me know, and  stay tuned for more information  in a future posts on my BLOG.. or email me if you have questions or immediate needs.

I  take great care of  projects!!!

Comments (15)

Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Mary, I know that you're still doing some of your research, but I would be very interested in having you present information about the financing packages you are exploring here to our team.
Jul 21, 2007 08:12 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Yeah, a Feature!  Congrats!  This sounds like a great loan.  Sounds like it would take the hassle away from contruction loans. 
Jul 21, 2007 09:32 AM
Bob Sloop, Consultant, Indianapolis, IN
RS Mortgage Consulting - Indianapolis, IN
Very nice post, informative, and I wish you much success. 
Jul 21, 2007 11:20 AM
Laura Monroe
Inman News - San Francisco, CA
Dir. of Industry Engagement & Social Media
Mary~ I'm still bookmarking for personal use:) My parents are building a green home, so this is intriguing..
Jul 21, 2007 01:07 PM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

LOLA - Thanks for stopping by! I'd love to do that for you!

I'll be at the UCI World Championship BMX races in British Columbia for the next week. My daughter is an athlete! Let's touch base when I get back! 

Jul 21, 2007 06:49 PM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

Stephanie!  - Thanks!

It is a great loan program. It has benefits for all parties involved!  They can be a little tricky if the originator hasn't done one before but I enjoy doing them. 

Jul 21, 2007 06:52 PM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!
Laura - Thanks. Feel free to call me if you have any question. Where are your parents building and...I have to ask! To what extent are they building green?
Jul 21, 2007 06:52 PM
ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779
REAL ESTATE REFERRAL NETWORK - Asheville, NC
CONTACT janeAnne365@gmail.com

Mary~

WOW!  congratulations on your featured post. Here is one reason why I subscribe to our BLOG and read what you have to say. This information is just what my brokers and my clients need. So many clients these days are interested in building homes that are sustainable in design and will give them high performance. But they wonder about where to find financing...thanks so much for this information.

Jul 22, 2007 01:15 AM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

JaneAnne - How sweet! A feature! He He!

I am so happy you have created this blogging group! I have noticed an increase in readers and contributors recently! This is exactly what is needed throughout the country to bring on awareness of the ECO movement. Your dedication to quality has attracted well respected professionals who are sharing their knowledge and expertise. 

The more consumer/professional education we can put out there the more highly accepted these practices will become. As the financial backers see the demand for these programs they will jump on board. It seems they are always the last in line but needed most!

My goal in this post was to educate -- now further research and reporting back!  

Jul 22, 2007 02:40 AM
Arina Hanciulescu
RealtyPros - Las Vegas, NV
RealtyPros

Great post and information. I will stay tuned to your blog to check back for more.

Jul 22, 2007 06:46 AM
Laura Monroe
Inman News - San Francisco, CA
Dir. of Industry Engagement & Social Media
Hi Mary~ They are building in AZ, Sunflower to be exact, outside of Fountain Hills, before  Payson...outside the Scottsdale area.  My Dad designed it himself...everything is green..it has solar panels, grey water system, composting toilets (first of its kind in AZ), and propane gas...plus a whole lot more..I think I will call you this week to chat with you about a few things;)
Jul 22, 2007 11:30 AM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!
Thanks Arina! I'll keep you up to date! Let me know if you have any specific questions!
Jul 22, 2007 02:29 PM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!
Laura - Wow! you probably have a ton of great information you can share with all of us! I was speaking with a couple at the energy fair who has had a composting toilet for years! Sounds like your Dad's home will be a little more towards the "High Performance" home! Share some pictures and posts when you have them!
Jul 22, 2007 02:30 PM
Corey Atherton
Suncadia Real Estate Sales Company - Cle Elum, WA

Great info and I'll definitely reference this post in the future.  I look forward to seeing more soon.

 

Jul 29, 2007 11:52 AM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!
Corey - Thanks! Be sure and bookmark this post and subscribe to my blog! To your success!
Jul 30, 2007 03:33 AM