1.  Enter the amount from line 14g of the HUD 92900WS  $__________ 
2.  Estimated up front MIP for amount on line 1, above.  $__________ 
3.  Sum of line 1 and 2, above:  $__________ 
4.  Monthly payments based on mortgage amount from line 3, above.  $__________ 
a) Estimated PITI and monthly MIP  $__________  
b) Estimated PITI, monthly MIP, and recurring expenses (total fixed)  $__________  
5.  Qualifying ratios using mortgage amount before adding cost of energy efficient improvements  
a) Mortgage payment to income ratio  _____.____%  
b) Total fixed payment to income ratio  _____.____% 
1.  Mortgage Interest Rate  _____.____% 
2.  Expected Useful Life (years)  __________ 
3.  Present Value Factor (from chart)  _____._____ 
4.  Expected Monthly Savings  $__________
x 12 
5.  Expected yearly savings

$__________
$__________ $__________ 
6.  EE Premium (Net Yearly Savings
x Present Value Factor) = (Present Worth of Estimated
Savings)
Net YR Savings $___________ x ____________ PV = $ EE 
$__________ 
7.  Installed Cost
Compare EE Premium to Installed Cost: 
$__________ 
8.  If EE Premium (line 6) is
less than installed cost (line 7), the energy efficient
items may not be financed into the mortgage.
If EE Premium (from line 6) exceeds installed cost (line 7), answer the following questions to determine the amount that may be added to the mortgage amount: 

Does installed cost (line 7) exceed $4,000?  ___Yes ___No  
If NO, show installed cost line 7) here and add to base mortgage amount.  $__________ 

If YES (installed cost exceeds $4,000), does installed cost exceed 5 percent of the appraised value of the property?  ___Yes ___No 

If NO, show the lesser of 8,000 or the installed cost (line 7) here and add to base mortgage amount.  $__________ 

If YES (installed cost exceeds 5 percent of appraised value), show the lesser of $8,000 or 5 percent of the appraised value here and add to the base mortgage amount.  $__________ 
The amount calculated above is the maximum amount that may be added to the mortgage previously calculated on line 14g of the HUD92900WS, Mortgage Credit Analysis Worksheet. Line 6a, 6b, and 6c of the analysis worksheet will reflect the addition of the EE premium in the new mortgage amount. Be certain to identify in the "Remarks" section of the worksheet why the final mortgage exceeds the line 14g and also show the revised loan to value ratio and borrower qualifying ratios for the higher mortgage amount. A copy of this Attachment B must be attached to the worksheet. The up front MIP must be calculated on the mortgage amount including the energy efficient improvements.
The following example shows a completed HUD 92900 Mortgage Credit Analysis Worksheet and an Attachment B for an EEM. In this case the property is valued at $70,000 and the borrower wishes to install $2,000 of energy efficient improvements that have a useful life of 10 years. The energy efficient improvements will save $30 per month in utility costs, but the improvements will also have estimated yearly maintenance costs of $60. The interest rate of the mortgage is 8% for 30 years.
STEP 1: QUALIFYING THE BORROWER
The borrower must be qualified for the mortgage amount before adding the cost of energy efficient improvements to the mortgage. To show that the borrower qualified for the mortgage amount, show the borrower qualifying ratios on the mortgage by completing the worksheet below.
1.  Enter the amount from line 14g of the HUD 92900WS  $_67,000___ 
2.  Estimated up front MIP for amount on line 1, above.  $__2,010___ 
3.  Sum of line 1 and 2, above:  $_69,010___ 
4.  Monthly payments based on mortgage amount from line 3, above.  
a) Estimated PITI and monthly MIP  $___594____  
b) Estimated PITI, monthly MIP, and recurring expenses (total fixed)  $___700____ 

5.  Qualifying ratios using mortgage amount before adding cost of energy efficient improvements  
a) Mortgage payment to income ratio  ___28.2___%  
b) Total fixed payment to income ratio  ___33.3___% 
STEP 2: ADDING THE COST of ENERGY EFFICIENT ITEMS to THE MORTGAGE AMOUNT
If the borrower is an acceptable credit risk for the mortgage amount requested before adding the cost of the energy efficient items, complete the worksheet below to determine if the cost of the energy efficient improvements may be added to the mortgage amount.
1.  Mortgage Interest Rate  ____8.0___% 
2.  Expected Useful Life (years)  _10 Years___ 
3.  Present Value Factor (from chart)  ___6.710___ 
4.  Expected Monthly Savings  $____30____
x 12 
5.  Expected yearly savings

$____360___
$____60___ $____300___ 
6.  EE Premium (Net Yearly Savings
x Present Value Factor) = (Present Worth of Estimated
Savings)
Net YR Savings $__300__ x __6.710__ PV = $ EE 
$___2013___ 
7.  Installed Cost
Compare EE Premium to Installed Cost: 
$___2000___ 
8.  If EE Premium (line 6) is less than installed cost (line 7), the energy efficient items may not be financed into the mortgage. If EE Premium (from line 6) exceeds installed cost (line 7), answer the following questions to determine the amount that may be added to the mortgage amount:  
Does installed cost (line 7) exceed $4,000?  ___Yes_x_No  
If NO, show installed cost line 7) here and add to base mortgage amount.  $___2000___ 

If YES (installed cost exceeds $4,000), does installed cost exceed 5 percent of the appraised value of the property?  ___Yes ___No 

If NO, show the lesser of 8,000 or the installed cost (line 7) here and add to base mortgage amount.  $__________ 

If YES (installed cost exceeds 5 percent of appraised value), show the lesser of $8,000 or 5 percent of the appraised value here and add to the base mortgage amount.  $__________ 
The amount calculated above is the maximum amount that may be added to the mortgage previously calculated on line 14g of the HUD92900WS, Mortgage Credit Analysis Worksheet. Line 6a, 6b, and 6c of the analysis worksheet will reflect the addition of the EE premium in the new mortgage amount. Be certain to identify in the "Remarks" section of the worksheet why the final mortgage exceeds the line 14g and also show the revised loan to value ratio and borrower qualifying ratios for the higher mortgage amount. A copy of this Attachment B must be attached to the worksheet. The up front MIP must be calculated on the mortgage amount including the energy efficient improvements.
Mortgage Credit
Analysis Worksheet
*************************************************************
GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED*
form HUD92900WS (10/92)
ref. handbook 4155.1