Making Money with Energy Efficient Mortgages

Good evening everyone and welcome to the national association of FHA Consultants as we present the third in our four part series of educational training sessions regarding the world of renovation consulting and FHA insured mortgages. I want to thank you all for being on the webinar today. I'd like to you.

My name is Kathryn hall and I'm going to be your host on this webinar. And what we're going to be doing today is going to be covering a lot of information in a very short amount of time. We only have one hour, but I have a special gift for you at the end of this webinar, so I hope you'll stick with me. So what we're going to do today is we're going to be starting a conversation about energy efficient mortgages. So now I know many of you have heard about energy efficient mortgages, but I know a lot of you haven't. And so today we're going to basically give you a thumbnail overview of what you can be expecting to know more about as you consider exploring the world of FHA energy efficient mortgages. Now, as I said, we have a very short amount of time and I'm going to be touching on very few points that actually could be expanded into a two or four hour CEU course. And spoiler alert, I'm actually going to offer you at the end of this webinar a chance to get a complete energy efficient mortgage CEU presentation course that you can give real estate agents, homebuyers or any audience that you want to share this information with. So we're going to be giving you that opportunity at the end of the presentation. So you ready to start? I am. So. So let's get going.

So the first thing that I'm going to do is I'm going to load up on the screen the slideshow that I want you to that I'm going to be sharing with you tonight.

And as soon as I get that up. Oh, there we go.

For things to be able to show up on the screen. So I'm hoping that it's shown up now. And as it says, understanding energy efficient mortgages is the topic for our webinar today. And we're going to be talking about this from the perspective of a home inspector, a contractor, or an FHA consultant.

Okay. We had a slight technical difficulty. I'm sorry about that. So let's begin.

Sometimes things just don't want to work, do they? Okay, great. So now first of all, I want to thank you all for being on the webinar today, 80% of success is just showing up. And by the fact that you're here shows that you have a desire to, to understand and appreciate this opportunity to get this information. So we're really excited to have you. So now we have a lot of people on the webinar today. We have close to 42, 43 people on the webinar right now. And so with that being the case, if you do want to ask some questions, I'm going to try to answer them as best I can during the webinar if time permits. However, if not, then I will be answering the questions to you privately in the form of an email after the event. But to the best of my ability, I will be answering any message that you place in the chat room. So I'm going to basically type a chat message right now.

And so I just typed it in there and I spelled the word presentation wrong so that you can see that there. So now the next thing I want to talk about is before I actually tell you a little bit about energy efficient mortgages, I believe that you will not hear a person's words until you know who that person is. So may I tell you a little bit about myself? Thank you. Well, I know this, I know this, might not believe it, but I did not come out of the womb as an FHA consultant or home inspector. In fact, my background was not in home inspection at all. I thought I was going to go into the performing arts. That didn't work out obviously. And I know many of you, the you didn't start out your business careers as a building consultant. Many of you have transitioned into this career from another industry. And that's like many of us. How I started was I owned and still do own a home inspection company here in the Delaware Valley of Pennsylvania called Value Home Inspections. Now While that says 20th anniversary, we are actually on our 25th anniversary this year and we are very excited about that. And being in business as long as I have, you have certain successes that you use to get to where you are. For me, our success came in evaluating properties and addressing them according to FHA minimum property standards. And last two weeks ago we had a presentation where I described all about FHA minimum property standards. Well, our company used FHA minimum property standards and inspecting for them as a USP unique selling point. And we got a contract with the city of Philadelphia to perform home inspections for first time buyers receiving federal funding. This was great because we actually were receiving our request to do home inspections on fax, on a fax machine. We just sat there and looked down at the facts and got our work. Well, all things, all good things must come to an end. And that contract did after seven years. And so it also coincided with the mortgage meltdown. So here I was in a situation where I had. I had several. I had four inspectors, I had two and a half people in the office. I had marketing people, I had overhead. Excuse me, no marketing people. And a lot of overhead. But then the faxes stopped coming in, and I found myself in a position where I had startup revenue with anything but startup expenses. So I had to find a way where I could quickly get real estate agents to start calling us. And for me, the best way to do it was to do group trainings. And this is why I love energy efficiency. That's why I love work CEU courses. And so in Pennsylvania, in order to teach continuing education credits to real estate agents, you have to be in a school. So what did I do? Partnered with a lender and started a real estate school. Short and sweet. And with that real estate school, we were able to train groups of real estate agents and we charged them nothing but the cost of a lunch. And we got to see 30, 40, 50 agents at a time, and we became the known experts. And my phone started to ring. Well, one of the reasons my phone rang was also because another one of our USBs was that every one of our inspectors was and still is a 203k consultant. And I was able to train my inspectors very quickly in how to become an FHA consultant. I literally had a box with all the materials that I would train them with and everything that I would use. And so I had a mentor who is a very dear friend of mine named Mike Crow of the millionaire inspectors community. And I was involved in that organization. It was a great asset to my home inspection business many years ago. And as a Better your Best contest finalist, he suggested that if you've made a rapid success, if you made a recurring success at training people with your N203k consulting, you ought to package it and take it and offer it to the general public. And that's how the 203K in a box FHA Consultant Training and marketing system was born. And to this day, we are very honored that we've trained over 250 people in the art of FHA consulting. Right now we have over 150 people active in, in our National association of FHA Consultant, which was the next progression. Because once you get so many people together thinking the same way, believing the same things, and Wanting to do things the same direction, that's when you start an association. And that's what we did. And NFVAC is the only association dedicated to the competency, consistency and community of the FHA consulting industry. So that's a little bit about who I am and that's where I've come from and that's how I've gotten to be sitting in front of you here today. So now this presentation is going to go over the highlights of the energy efficient mortgage. And because I am going to be describing things that are part of government policy, I need to basically give this disclaimer that says if you find a discrepancy between the presentation and the mortgagee letters, handbook, etc. Than the official policies rule. The reason why I say this and put this disclaimer in the presentation is because.

Things in HUD change and I could be making a conversation right now about something and tomorrow they might put out a new mortgage e letter to completely change what I've just said today. So always make sure you refer to the HUD guidelines. And so now what we're going to talk about is going green. Everyone wants to go green and it isn't, as you see, just a fad, but a lot of millennials buyers who are coming up now, they want to have a home that does not have a very large carbon footprint, which means it doesn't give off a lot of carbon emissions, et cetera. And so this is something that is not just a fad that was just coming and going like, you know, platform shoes and shag rugs. This is going to be a long term life changing model for our country because it helps in many ways, as you can see. So what does this mean for us? What is an energy efficient mortgage? First of all, I want you to understand that an energy efficient mortgage is and always can be a standalone mortgage or it can be a stacked loan on top of any other FHA insurable mortgage. So now our very first webinar in this series was about FHA 203k and that is a loan that a person can use to buy a property that's in need of rehab. There's also the FHA 203 which is a conventional renovation loan. It's a straight up FHA mortgage. There's a Fannie Mae home there, excuse me, there's the 203H which is a disaster relief mortgage. These mortgages all can allow you to have an EEM energy efficient mortgage stacked on top. And what it does, it allows a person to add the cost of energy improvements to the purchase price and not have to qualify for that money, nor do they have to make a calculation of the actual monthly payment and back end ratios on the value of that money. We're going to go into a lot of detail and let me give you a heads up. There will be math, okay? So be afraid, be very afraid. There will be a math, okay? And so with this program, with the energy efficient mortgage, we're allowed to work and operate a home and be able to get it to be exactly the way we want it. So now why should people consider using an energy efficient mortgage? Well, first of all, everyone is talking about the fact that homes cost a lot to operate. You see energy star on appliances, you hear conversations about their companies out there who are leasing solar panels that you can actually get on your home. Anything that you purchase, you're looking at the energy value, the energy score. When you buy a car, you look at the miles per gallon or the energy efficiency, the mileage efficiency rating of the car. And so when it comes to home ownership, the largest percent of the expense of the home is, is in heating the house. And so if they can, if a homeowner can achieve more savings in the actual operation and cost of running the home, then they're going to be able to have less of a expense on the back end of their life, which will allow them to afford more mortgage on the front end.

Now that sounds a little weird, but what a 203, what an energy efficient mortgage does is it allows a borrower to be able to reduce their utility bill and add the cost of that, of the appliances and systems needed to improve the efficiency to the mortgage. And that allows them to work with a house and they pay the mortgage in a monthly payment, but they're not actually having to have a high utility bill. So as you can see, the utility bills of most homes, 41% in fact, is in the heating, and then the refrigerator freezer is another 10%. So 51% of the home's energy consumption goes to one appliance and the heating of the house. And so when you're considering an energy efficient mortgage, what this means is that they'll be able to add a cost effective energy package to the purchase. Now, what is a cost effective energy package? That means that you're adding the cost of the purchase of energy efficiency improvements to the purchase of the home. And if the cost of the two together over the useful life of those systems is less than the cost of the monthly utility bill, if you don't have it, then that's considered an acceptable energy reduction. And that's what you allow. That's what it's allowed to have happen with the energy efficient mortgage. So now what actually are the features of the energy efficient mortgage? Well, you can actually borrow based upon a HERS rating. And so anything that the HERS rater can indicate would improve the efficiency of the home can be included in the eem. And so as you go through the property, you're talking about an energy score that's going to be created by a HERS rater. And this is actually a very efficient way to be able to do your home purchase of the property.

So here you can see that we have an example of a home that has a. It's very leaky, okay, leaking air. You can see a basement window that's letting air intrusion in under here. There's a gap here in the softening where the gutter is. You've got poor, improper, poor older windows. You've got a gap here at the actual trim. You've got an exhaust fan that's actually not venting correctly. You've got a whole lot of seals in the door frame. And you have air that's flowing straight up. And you have an M, you have an actual, an old fashioned thermostat. And then using a new modern thermostat, sealing up the gaps, sealing up the window, putting energy star appliances in, adjusting the light fixture so that you have low.

Excuse me, LED light fixtures, you now will have an actually installing solar panels. You now have a home that is incredibly energy efficient. And all of those things that I just described doing can be included in the mortgage using a energy efficient mortgage. So now the important thing to note is that all of the repairs that are identified by the HERS rater are included in the energy package. And actually what happens is if it's less than the total present value, the cost of the items plus the maintenance is less than the present value of the energy saved over the useful life. It's a doable project for energy efficient mortgages. Now as I said earlier, energy efficient mortgages can be used on any kind of FHA product except the reverse mortgage. So new and existing homes. So you can purchase or refinance with an EEM as long as it's only up to a four family dwelling condominiums, there are some condo restrictions and manufactured homes are also eligible. So any kind of property that's eligible with an FHA loan now can have an energy efficient mortgage added to it. Now we talked about any kind of FHA mortgage One of the best FHA mortgages to work with with the energy efficient mortgage is the 203K. Because if you think about it, we are already going to be doing renovations, improvements and upgrades in the property. Why not add the energy improvements in with the renovations and be able to increase the value of the home and lower the cost of the project. So with the 203k and EEM, you have a great product that actually works easily together because that one, that home energy report is then done before the consultant comes in and does the write up. Some of those repairs are added to the work write up and then it's incorporated into the total package of the 203k. So you would end up having an EEM 203k mortgage where you're adding the extra cost to the purchase of the home and qualifying to add more repairs to your property without having to be concerned about the after repaired value. And then the good news is that all these energy efficiency improvements can be included in the inspections that are done by the consultant and that don't necessarily have to be done by a rater. So this saves money on having to have a separate rater come in and inspect those repairs.

So now let's talk about how you qualify for an energy efficient mortgage. Well, there's one very important consideration with any FHA loan and that is the maximum mortgage worksheet. You see, with any FHA loan there is a loan limit that you cannot exceed. Here in my area of Pennsylvania, the maximum loan limit for single family residents is $417,250,000. If you might remember back to the value to the 203k presentation, I showed you that in some areas of the country the maximum loan limit for a single family home is as high as 6 to $800,000 because that's what the median home price is for that market. So now when you are calculating your energy efficient mortgage, typically you take 3.5% of the total amount of the property purchase plus the repairs. That's what a 203K would be. So if it is a $200,000 mortgage, then you are going to take 6.5% of $200,000. But if we have a $200,000 mortgage and we're adding $5,000 in energy efficiency improvements, normally you would be saying that you're going to calculate 3.5% on 205,000, which would be higher. But then you don't. But in this case you don't have to take that. You. So Instead of that $5,000 down payment, you're only having 71,000 7,175. You would not have to calculate it on that extra $5,000, but only on the 200. So I told you it was going to be math and here it is. So using that example of a $200,000 sale price, the maximum EEM is 5% for the traditional repairs of weather stripping insulated doors, upgrading the H VAC system, adding insulation, putting caulking around the windows, replacing the windows, putting insulation and caulking around outlets. Any of the things that the hearth raider may say short of a solar or geothermal system, would allow an increase of $5,000 added to the purchase. Now, with that being said, we're talking about 10, I'm sorry, 5%. That's $10,000 of improvements. If and that $10,000 is considered acceptable and approvable in an energy efficient mortgage because the hers rater is going to calculate that by doing these $10,000 worth of repairs, we're going to save $60 a month in our utility bill. So if we're saving $60,000 a month, then the energy savings per month must be at least the amount of the mortgage payment would be if the EEM costs were included. So how do we calculate that? So here as you see, I told you it was going to be math. This is a regular FHA mortgage. And let's say it's a 203K. So the value of the house is going to be $200,000. The mortgage is 200,000. The mortgage amount is going to be 200,000 less the 3.5% or $7,000. Now let us pretend for discussion purposes that this a part of this $200,000 includes $30,000 in 203 repairs. Okay, so now 30,000 in 203k repairs, our total principal and interest at 6% over a 30 year fixed mortgage would be $1,158 with no energy saving. So your adjusted P and I principal and interest only would be 1158. Now let's take that same loan with an energy efficient mortgage of 5% of the value or $10,000. We're now going to add $10,000 on top of the 200. Our new mortgage amount is 203. We are still only putting 7,000 down. We are not going to take 3.5% of this 10,000. It does not. You are not. You don't take anything off of this. It's basically free money. You simply add it to the mortgage. So we add the 10,000 to the mortgage. Subtract our 7,000. Our adjusted, our principal and interest is $1218. Based upon the hers report we just showed you, our projected energy saving is $60 a month. So what that means is our mortgage payment less our improvement. Our deductions for energy savings is the same as if we were not doing any repairs at all. And so that's why we call this free money. And here's where it gets even more fun. If I'm doing a 203k loan and I had 193, remember I said 30,000 of that was going to be 203k repairs. What if inside that number some of those repairs were qualified as the energy efficiency improvements? Well, I can then subtract that. So let's say 3,000 of the repairs was qualified as energy efficiency improvements. Well, that's going to be included in this 10,000. So that's 3,000 I can deduct from this mortgage amount because the money's still going to be done. But added in the EEM. I so now I only have 27,000 in 2 or 3k repairs. I'm actually going to be having a lower mortgage because I'm actually going to be dropping down from 203 to 200,000 in mortgage. So my mortgage rate is going to be even lower than this. So it's actually going to be closer to this even with the eem. And this is where we have a lot of fun moving money around for things that now can be included in the eem. So let's say I was going to Upgrade to a 17C or H VAC system with new ductwork that was going to be insulated and that's a $7,000 thing. Well, there's 7,000 that can go in here. That can leave me 7,000 more I can spend in other desired improvements or other non essential repairs that the borrower may have wanted to do but opted not to do to keep inside a budget. This is why I love eems. But here's the thing I want to show you. In most cases, and I've discussed this with HERS raters around the country, that estimate of what the savings and utility bill will be is a very conservative estimate. And in most cases it's a 5 to 15% additional actual result of savings that the borrower, the homeowner finds. So in reality that energy efficient mortgage that gave them a $1,218 a month mortgage actually is saving them $85 in utility. So their adjusted monthly principal and interest is actually lower than if they had no energy if they didn't have that $10,000 added at all. That's what I call free money. $10,000 worth of free money. And that is so fun. So now there are many improvements that can be done. I've already talked about some of them in the in earlier times and you can see a list of the some of those elements here. The important thing is that the improvements must be approved and listed by a HERS rater. So here's how it works. If you're doing just an energy efficient mortgage on top of a regular FHA loan and not a 203k, all the repairs must be finished within 90 days of the close of the escrow on the energy efficient mortgage. If it's doing with a 203k then just like the 203k you have the full six months. Here's the nice thing too. Let's say that you're buying a new construction with an FHA mortgage. New construction work is able to be using an energy efficient mortgage. So if the builder says that he can give you upgrades with energy efficiency improvements that would make the house more energy tight, energy efficient, but it's going to cost you more money that can be added to the mortgage, provided all of those EEM repairs that the builder is going to do are completed at the time of closing.

In all of these examples, there is a post test done to make sure that the energy that the energy savings are going to be realized. And with the 203k, the home energy report is done before the work write up. In fact, a good qualified consultant, a NAFAC member consultant, has been trained to suggest to the borrower in many circumstances where they're doing a whole house remodel. I suggest perhaps we get an EEM report so that we can find out where we could have some savings in our 203k numbers by moving some of that money into the energy efficiency improvement. All those repairs need to be written up into the work write up, which is very easy for a qualified consultant to do. And if there are additional inspections, you are allowed to have up to two additional inspections to the standard five 203k inspections for the EEM evaluations if needed. So let's talk about solar, because solar is a whole different world where you're allowed to add up to 5% for all the repairs that are energy efficiency improvements inside the home. If you are install, if your client or you are installing a solar panel system, passive or active or geothermal, you are allowed to borrow up to 15% of the after repaired value without having to qualify, without having to have your debt to income ratio be affected and you don't have to make down payment on 15%. So this actually is a great way to be able to use the system.

Also insulation. Many times homes lack adequate insulation and simply the addition of some substantial amounts of insulation either in the exterior wall, in cavities and ceilings, in the exposed floors, under garage. All these areas pointed out have. These are very. These are the various R values that are recommended. But your municipality might have different requirements. But this is one of the things that an energy efficient mortgage is most valuable used to improve insulation in the home. So how does it work? Here's the cool part. The appraiser doesn't have to get the value. This $10,000 does not have to be appraised. There's no requirement that you add this up and they must find a comp for that. Also with that this HERS report is used to calculate the dollar amount of the cost effective energy package that's being done.

So now what is a home energy rating? Now I've seen a couple of questions here in the chat room and one of the question was can I do a bpi.

A Building Performance Index? No, HUD only allows the EEM to be used with a HERS rating. You can't use any other kind of rating. You can only use the HERS rater. And with that involves a blower door test.

Other tests that they'll do. So what they're going to do is they're going to calculate a rating between 1 and 100. The lower the score, the greater the efficiency. And what he's going to do is he's going to create a report that says the biggest problem that I see in this home is windows that have very poor. There's very bad glazing in the windows or older wood windows, they're in bad shape. Most of the air is coming in from the windows. Also my next thing that I see is we don't have any insulation of any value. It's all compressed and old in the attic. And I also see that a lot of the H Vac ductwork in the basement is not wrapped or insulated. And those three things alone would be able to increase our energy efficiency. Well, if we're replacing every window in the home and we have 10 windows and it costs $300 per window, well there's $3,000 right there. Okay, so there's 3,000 chopped right off the top. And so that's how you are going to get this information. And he's going to state that the life expectancy of a new vinyl low e argon gas filled window is going to be approximately 15 years. So they take the cost of the window that you're paying. And so if you're getting a vinyl low e argon gas filled window, you're probably, probably paying close to 4,450 if that's the case. Here's the thing, that Windex, that's going to be a 4,500 to $5,000 cost. And if you break that down over the course of the life expectancy of the window, and let's say we have the $5,000 high end window divided by 15 years divided by 12 months in a year, you're looking at a cost savings of $39.99.

Per month, I'm sorry, $3.99 per month in energy savings just on those windows. And so other elements can give you a higher value. So here you can see an impression, the actual picture of the actual fan blower to test what's happening with the return. All right, so this actually is showing where the air is coming in. And, and here is the blower door test. And so that finds holes in the ductwork and it finds leakiness in your house. Here is another important image, and I love this picture. Part of a HERS rating is usually a thermal imaging. And that thermal imaging is there to provide information about where the heat loss is in the home. And so what you're looking at right here in this corner is this is where the exterior wall insulation is, is not been put all the way to the corners. And you can see how very, very cold it is on the actual outs right here at the corner of the exterior wall. And how warm it is in the ceiling because it's insulated ceiling and how warm it is on this wall because it's an interior wall. And you can see where it's actually getting closer to being cold on this exterior wall. And so one of the things that the home energy grader will do is he will actually measure the air infiltration in the home to determine where is the loss. So here you can see in this bottom picture, you can see where all of the windows have the heat coming out and where the brick is cold. And so this is an actual and acceptable picture of that. And if those windows had been low E argon filled, you probably would not have seen such a bright hot look. So now here's what the typical process is that takes place when you are working with the hers rater. And with the 203K, what's going to happen is you as a consultant or home inspector, are going to suggest to your customer, I think an energy audit, a home energy audit will be a valuable expense for you to determine what kind of cost savings you could affect in an eem, especially considering we have these old windows, the heater needs to be replaced, we've got, you know, you've got some missing or compressed attic insulation that I've identified. Or all these things are things I think we should test. So we get the hers rating and usually cost between 3 to $600 for a hers report with analysis and estimate of the cost of the repairs and the projections over the course of the life expectancy of those systems. So that's about 3 to $600, usually closer to the 6 range. And then that report is then given to the lender to say, okay, my HERS raider says I need to add new windows. I needed to put this, I need to do this. And total is $10,000. I'm getting a $200,000 mortgage that represents 5%. Here's the repairs. Then you find a contractor who's going to complete the repairs. He puts in his proposal for the cost needs to be less than 10,000 for certain. And then you actually go to closing and they're closing on two separate loans, a regular FHA mortgage or FHA 203k and a hers and an eem.

So as you can see, the hers report includes annual estimates and the rating index for the things that are in the home now and what the things that need to be done. So here you can see RESNET is one of the best resources for understanding about the whole industry of the residential energy network. And when you get your HERS report, a lot of the information on the HERS report will be covering air sealing. A lot of times, just sealing up the gaps with foam insulation, especially in basements or crawl spaces, helps reduce the drafts. The ratings are going to be higher when you have a lot of air infiltration. An air sealing will be one of the biggest elements of that HERS report. So you're going to do reducing the drafts, you're going to help infiltration and exfiltration, you're going to help lower heating costs because cold air is not coming into the house. It also is going to help reduce moisture cost. So one of the advantages of air sealing, which is a very common activity in homes today, is the fact that with that air many times comes moisture, which causes a mold concern. So all of these things are elements of air coming into the home that are corrected when you do an air sealing activity which is actually can be part of the EEM as required by the energy rating. Okay, so this is actually what you're looking for when you're doing an energy audit, an energy efficiency audit.

Now as I said, resnet is one of the best sites you can locate in hers rater you can learn about how to become a home energy rating individual. You can find contractors and certified remodelers who can do the repairs that are required for the energy efficiency score. And there you see on the website that a standard new home has typical standard new home has a 100 score. Older existing homes can have scores of 150 and up. I would hate to see what my house looks like. And a home that's been corrected and modified to meet the actual Resnet standards can be as low as 65. This is an amazing opportunity because when you think about it, all these homes that have lower energy scores, they're going to sell better. You'll find that home buyers are looking for homes that have energy scores. One of the things that we're going to be going into great explanation with at the upcoming 203K Super Conference, the home energy scoring. This is a service that allows an individual to get the home scored on where the existing elements fall in a certain matrix to determine that if you have windows that are like this, then your score, okay, then the score for that window is a four. And if you have energy, if you have low E argon filled gas windows, oh well you know what, that is even a lower number. So you're going to get a 1. The lower the score, the higher the energy efficiency. So if you have a score of a certain number six or below, you're able to have your, the borrower is able to have the back end ratio of their mortgage. So in other words the debt to income ratio, they're allowed to add 3% more on the debt side of their debt to income ratio because the belief is with these low energy consuming elements in the home, their utility bills are going to be lower. So the cost to run the home will be lower. So their ability to qualify for more home is higher. Okay, so I'm going to stop that for a quick second.

What I want to share with you is get this open. There you go. Okay, so now here's what I want. You understand about energy efficient mortgages and 203k. It is your responsibility as a consultant, it is your responsibility as a home inspector to give people this information, to offer these options. They don't know these things. Many of you probably didn't know it yourself. And because knowledge is not power, you see, people say knowledge is power. Knowledge is not power. The use of that knowledge is power. And if you have the ability to share this information to real estate agents, the lenders who don't even know it, companies offer this mortgage and they don't even know about it because they've never looked to use it. So your job is to help open the eyes of the audience. The lenders, the real estate agents, the home buyers, existing homeowners, community centers. The whole world needs this knowledge. You now are in a position to share it. There's something called reticular activation. Reticular activation is a fancy phrase for a situation where you now are in tune to something. For example, remember when you bought your last new car or any car, you thought it was the most unique car. You hadn't seen any of them like it. The day you bought that new car and raise your hand on the website, raise your hand or type yes on the chat box. The day you bought that new car, don't you realize, didn't you realize that all of a sudden you saw that car, make, model, color, everywhere you went? It's because now you had so much familiarity with that car that you could see it and spot it and pick it out, even when before you were oblivious to it. Well, this knowledge in FHA energy efficient mortgages is going to give you the tools so that you now are going to start seeing it everywhere. Opportunities to one dimension. And you're going to say, wait a minute, I know something about that. And you are going to be able to do something that is really even going to make it better. You're going to have the opportunity to teach it. What's the best way to become an expert on something? Teach it to someone else. And that's what we're going to be giving you the chance to do now. So now what I've done is I've actually given you a very abbreviated presentation. I'm going to continue it in a minute. We actually have an entire energy efficient mortation system that includes a syllabus, course outline, an actual educational advertising flyer, and this presentation expanded into more slides than I've shared here today. For you to be able to give an audience presentation, either real estate agent, home buyers, homeowners, nonprofits, whatever you want, wherever you want, a webinar on your website. You can now share this information and in the form of a CEU course. This presentation usually is two and a Half to three and a half, four hours in length. I said I cut out a ton of slides to make us fit the limited time that we have today. But this actually is an informational presentation that you can share everywhere in your market and you're going to find people are going to value this knowledge. So let's keep going. But I wanted to stop and share that with you because it's so critical that you understand that yes, resnet is a resource, now you are going to be a resource.

So now Energy Star, this is a website also that's very valuable because there you can see the home energy yardstick, Energy Star Home Advisor and home energy audits and the heating and cool. All these are resources. But one of the things you need to make sure as a consultant or as a home inspector either even that you are looking at the properties and determining are these appliances Energy Star rated? And if they are, it's a great thing to say to the customer. Guess what? Hello, Mrs. Homebuyer, I just did an inspection and I noted in your basement. I was down in your basement and I just noticed that your water heater is relatively new and it has a really good Energy Star rating. Many of water heaters today and heaters have a yellow sticker on them that tells you what the energy consumption is. And if they have the home Energy Star, that's even better because that means that the home, that the appliance is actually going to be a cost savings resource to the homeowner. And so in addition to resnet being an excellent resource for you, Energy Star is also great option. So okay, I have some questions. What about the Department of Energy Home Energy Score? Well, as I just said, that's one of the things that we are going to be going over in great depth at the 203K Super Conference in October in Western Florida. We're going to be going over how to evaluate it, we're going to talk about how to offer it, how to educate consumers about the benefits of it and how to let real estate agents know that this is actually not a roadblock to closing, but actually is a path to get into the settlement easier and reducing the lenders restriction on qualifying for the mortgage. So thank you for that question. There's another question here. It says can I function as the energy efficiency auditor and my and the 203k consultant? Absolutely, yes, yes and.

Yes and yes. Okay. You absolutely can and should, if you can qualify to do both, get the income from both of those things. Don't leave any money on the table. So if you are a qualified hers rater right now and you are not yet a 203k consultant, come to the super conference, get approved on the roster and double your income and be able to create scenarios where you're going to not only be needed as a 203k consultant but but you're going to create situations where you'll be needed both as the hers rater and the 203k consultant. And what that's going to end up doing, putting money out to you. Okay.

Let'S continue with that.

What is the most valuable guide and resource for information about the energy efficient mortgage? Well, well, thankfully HUD has a brand new program. It's actually a web based document called the HUD Single family policy handbook 4000.1. And this policy handbook actually is online searchable and you can go to it, you can just google 4000.1 and you'll be able to get this HUD Policy handbook. You can Download the full 5 million pages. I don't know why you would when it's actually web based and searchable. So you don't have to worry about that. And another thing that you can do is if you're not sure whether or not a property is a qualified project for a 203k for an energy efficient mortgage, call HUD. This is an area that they really want to work with. They actually can help you understand what are resources that you need to use. They can help you identify HERS raters if you need to do that and actually can give you some information and resources for, for the lender who's processing the loan to help them feel more comfortable with the actual loan processing activities. And so this is actually. So reach out to hud. Don't be afraid to call them. Yes, you might sit on hold for 12 hours but once you get through to somebody, you might be lucky and get someone who's going to be able to help you. So that is the abbreviated presentation that we normally give and at the end of this training that I would be giving in a real estate office or at a home buyer workshop. What we typically do is we actually will provide a slide where I'll ask have I earned the right to share with you information about my company and why you should use me? And you'll usually get the answer absolutely. And then this is the slide that we have. There's several slides included for you to be able to enter your USPs, those things about your company, your unique selling propositions. What are some of the unique selling propositions that I want you to know about as far as the national association of FHA Consultants. Well, NFAC is an amazing resource. We actually are a nonprofit organization dedicated to helping, as I said, the success of individuals, entities and businesses and homeowners with an understanding of what.

203K consulting is. And this is our website, the national association of FHA Consultants. Here you can find the link to the webinars that we're holding and the 203k revealed. All you have to do is enter your name and email address and hit submit and you're able to access all the webinars. Even the one we're completing now will be added as a replayable webinar. We actually have membership and membership in the national association of FHA Consultants is 100% free. For the non certified level. We actually will offer you information and resources including you can download my free book which is called Insights of a successful 203k how to have or run a Trouble Free FHA Renovation Project. So you actually can get that free on our website and and you can also get information about our super conference and you also can see if there are any NAVFAC certified consultants in the area where you work. So this is actually the different levels of membership and here you can browse by date. So that's what the national association of FHA Consultants does. And so presentation, you're going to put down the things about your company that are your unique selling points. And our biggest unique selling point is our Genesis Rehab reporting system. And the Genesis Rehab reporting system is complementary with the basic membership rate for Genesis for NAFAC membership for all approved certified FHA consultants. So this is something that we actually give the software free because that's our way of ensuring consistency in the market by everyone having the software free to use with their membership. So here you can see that on if I were given this as a training presentation in my company, I would be able to put this down and say a copy of this presentation is available on my website and you actually can edit this page. You can put your own logo down here or if you are a NAFC member, I'd leave this logo here and I would add your logo over here. And so this actually is. There are a number of. There's about half of the slides I did not include in this presentation. That breakdown, a little bit more detailed about energy scoring, about thermal efficiency, about Windows is a very pretty slide showing what an argon gas filled window does in relation to a regular thermal pane double hung window. As far as Energy Intrusion, Heat and Cooling, and some other slides that are really fun. This is a very fun presentation because this is something people can understand and easily gravitate to the fact that they get free money. So I told you I would give you an opportunity to get this entire CEU course package absolutely free, and I meant it. And the way we're giving this to you is through your is free with the ticket to the actual.

Super Conference. So now, right now on your screen you should be seeing a link that says register now to get your free course. And this is actually going to be immediately downloadable as soon as you complete your registration for the conference. Additionally, we've lowered the cost of the ticket for the conference back to the price that it was two weeks ago, even though I promised I wouldn't. The regular price now is $157 and that actually is still a discounted price. And after August 15, it goes up to our regular price of 197. Even at that rate, the three day training that you're going to be getting with the 203k super conference on Understanding FHA Minimum Property Standards, literally walking through a house and identifying in person minimum property standards and then creating the soft using the Genesis software, creating the items that will be necessary in the scope of work. All that and more is going to be discussed, including, as I said, home energy scoring, energy efficient mortgages, how to market all these activities and how to write the reports up and include these Items in your 203k repairs. Many of the people you see in this picture attended entered actually what we called the 203k discovery days, which was a smaller version of the Super Conference that was held in May of this year and in Boulder, Colorado. Many of these people you see here are coming back again to this event because they know it's going to be an even more expanded version of this, of that small one and a half day. We got such a great response in that one and a half day that we said, you know what, we're going to take it into four days, excuse me, three days and you can actually get in for $127 and get the EEM CEU course package absolutely free. And as I said, it includes a flyer that you actually can use to be able to market to your real estate community. And I'm actually going to show you some of the elements of that coursework.

Whoops.

Get over here.

So what I'll do right now is show you what is included in that package.

So one of the things that you're going to receive is an actual PowerPoint, excuse me, publisher file that is actually here, I'll put it up on the screen. It's actually a flyer that you actually can customize and produce and give out. And you put your information here and you actually can put your logo up here. The agency, if you're giving it as an office training. And then on the back of this you put your USPs. And so this actually is a flyer that we've created for you to be able to use for this event. Also, we've given you a complete Word document, totally editable by you of the course outline. And this is the same course outline that has been used successfully to obtain CEU credits for the program. The only thing that you need to incorporate in this is you might have to add how much time you're going to spend in each of the sections depending on what your state's requirements are for ces. And as you can see, this is a four hour course. And as I scroll down you can notice that there's a lot of slides and information that I omitted in this brief presentation. So that actually is customize it. And then the CEU course that you're seeing today, only in a much more expanded version. So that's actually what we're going to. We're giving you these great options and we're giving this opportunity so that you can benefit from the world of energy efficient mortgages and 203k consulting. Because this is a great opportunity for everyone to be able to use this. So now I have a question and the question is, if I already purchased my Super Conference ticket, can I still get the CEMCEU course? Yes. I knew that question was going to come up because I know a lot of you on this webinar have been on the other series of webinars. And so if you've already purchased your package, okay, and you'd like this EEM course, I want you to send us an email.

Go to the pan. I'm going to go to the next page. I want you to send us an email for support.org.

Course and then we will check your name and make sure the email address that you give is the same one you registered for this, the 203k super conference. Going to compare that email address and then we will send you the link to the page where you can download that extra cost. Since you've already purchased the event earlier, we don't want to penalize you for taking action sooner. So if you haven't already done so, please, please, please don't some people call this yes.

Saying I wanted to get the MP at the sale seems to be over. Yes it is. And so the price for the energy for the minimum proper system went back up to $319. This EEM course is 197 on August 13th. But even at that.

If you do a real estate office training and there are or a CEU course let's say you don't even as a CE but you do an abbreviated course as an office education training meeting coffee clatch with coffee and donuts for the agents. You do this class and you do it and you just trip what I've done today less than an hour and you actually and let's say inspection as a result of the expertise and training you demonstrated. Well guess they're going to you've made more money on that one that one home inspection than it cost for the EEM course package. So even if I hope you don't this is still a valuable product and this is the first time we are off side of the complete to FHA consultant training and marketing system. So the slide that just went past said thank you and for you to please look for a replay link in your email inbox so that you can go through this information again. But I hope you'll join us at the 203K Super Conference for more information Super Conference just click the link here on the page that you're watching or or go to www.aksuperconference.com. so ladies and gentlemen I want to thank you all.

Time commitments on the webinar to get you guys out on time so you can go back to writing reports or getting those kids in bed. But I want to thank you personally and as I like to say until I'm able to support you in the future and I hope that's at the Super Conference or the next webinar which is in two weeks which will be on the Fannie Mae Homestyle conventional renovation mortgage compared to the 203k. The differences will make you money. So that's the title of that last in our four part series. So until I'm able to support you please visit us on the web, check us out on Facebook and join us at the super conference. Thank you and have a great evening. It.

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