e. Documentation Required with Closed Loan Package

Energy efficiency improvements up to $3,000:

Evidence of the cost of improvements such as a copy of the bid(s) or contract itemizing the improvements and their cost.

Improvements more than $3,000, up to $6,000:

Evidence of the

·   cost of improvements such as a copy of the bid(s) or contract itemizing the improvements and their cost, and

·   the lender’s determination that the increase in monthly mortgage payments does not exceed the likely reduction in monthly utility costs.

Improvements over $6,000: 

·   Documentation of VA’s valuation of the energy efficiency improvements, and

·   for prior approval loans, the Certificate of Commitment must reflect the additional amount.

IRRRL with significant increase in payments: 

If the cost of the improvements causes the new loan payment (PITI) to be 20% or more higher than the old payment (on the loan being refinanced), then include the lender’s certification that it has determined that the veteran qualified for the higher payment.