Banks, appraisers don’t understand the value of solar homes, building exec says
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Q: Why don’t more people buy solar and net-zero homes?
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And then the last piece is (mortgage) underwriting. You want to spend $10 to save $30, which is kind of what you do when you build a zero-energy home. The underwriting doesn’t give you the credit to spend the initial, upfront money to reduce the total cost of the home. So buyers can often be prohibited by just their availability of funds.
They have to choose between square footage and total performance of a home. And sometimes pragmatically, they’re forced down the path of square footage because the appraisal and the underwriting standards don’t give them that proper valuation for these higher performance homes.
Q: Do those appraisal and mortgage underwriting standards exist?
A: They exist as options.
There are some banks that offer something called an energy-efficient mortgage, which takes the reduced operating cost of a home and improves the underwriting ratio for the buyers.
Q: How many lenders offer the “energy-efficient mortgage?”
A: The last time I looked, there were three energy-efficient mortgages written in the entire U.S.
Q: Three in the whole country?
A: Correct. In the entire country.
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