Energy-Related Weatherization Items. If weatherization items are to be added to the property and paid for by the borrower, the mortgage amount may be increased by the cost of those items as described below. Weatherization items include thermostats, insulation, storm windows and doors, weather stripping and caulking, etc. These items may be added to both the sales price and the appraised value before determining the maximum mortgage amount. (A contractor’s statement of cost of work completed or a buyer’s estimate of the cost of materials must be submitted. If the weatherization items cannot be completed before loan closing due to weather-related delays, the lender must establish an escrow account to ensure eventual completion of all items.
The amount that may be added in calculating the maximum mortgage is:
a. $2000 without a separate value determination; or
b. Up to $3500 if supported by a value determination by anapproved or FHA roster appraiser or DE underwriter; or
c. More than $3500 subject to a value determination by anapproved or FHA roster appraiser or DE underwriter and a separate on-site inspection made by a FHA-approved fee inspector or DE staff appraiser.
3. Solar Energy Systems. The cost of solar energy systems may be added directly to the mortgage amount (before adding the UFMIP) after applying the LTV ratio limits. The statutory mortgage limit for the area also may be exceeded by 20 percent to accommodate the cost of the system. The amount that may be added to the mortgage is limited to the lesser of the solar energy system’s replacement cost or its effect on the property’s market value. Both active and passive solar systems are acceptable, as are wind-driven systems.
