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NHP: Credit Parameters

David - PLR Product Ops avatar
Written by David - PLR Product Ops
Updated over 2 weeks ago

The LightReach New Homes Program credit process is designed with flexibility in mind for builders and homeowners. For the New Homes Program, Credit does not need to be run until the M2 Activation Milestone.

A

Credit Requirements

  • Credit check for the New Homes Program is a step that gathers data, meaning that while credit must be ran, it will not be rejected outside of extenuating circumstances.

  • Must be completed for M2 Activation Milestone

  • Can be ran anytime during M0/M1/M2

B

Credit Validity

  • Credit valid 180 Days from initial run

  • Once contract is executed, credit does not expire. (However, LightReach reserves the right to cancel files which do not achieve installation after an extended period of time--technically 160 days or longer. LightReach does not actively enforce this, barring extreme circumstance with the Certified Installer)

C

Credit Application Requirements

  • Full Name & Basic Contact Information

  • Full SSN is required

  • ITIN number can be run in place of SSN if homeowner does not have an SSN

  • Maximum credit check rate limit of 6 on all accounts

D

Signing Requirements

  1. An email account

  2. Contract fully signed & executed in correct, full legal name

  3. ACH payment input by the homeowner in the homeowner portal. (payment sign up via homeowner portal, either through the app or web dashboard. Steps outlined here.)

Property Ownership Overview

A

Ownership Parameters & Property Types

In general: Single family, fully-owned homes (residential). This is inclusive of:

  • Primary residence

  • Secondary residence

  • Investment/rental properties (No more than 3 active applications per client at any given time)

  • Multi Family (must be fully owned)

Corporations & Trusts:

  • C-Corp / S-Corp acceptable, but corp. officer must reside at property and be signatory on contract (other docs may be required)

  • Trusts and LLC acceptable if homeowner on title is also a trustee or the controlling member.

B

Eligible Properties

View full eligible site details here

A

Soft Credit Check vs Hard Credit Check?

All New Homes Program plans feature a soft credit check. This means that there is no impact to the homeowner's credit score. Additionally, the Lease/PPA does not report as debt.

B

Credit Results: Applicant Not Found

For the New Homes program, this credit result will complete the credit check step and satisfy the credit requirement.

C

Credit Results: Decline

For the New Homes program, this credit result will complete the credit check step and satisfy the credit requirement.

D

Credit Results: Error

  • Special characters in the application will result with an error. [ie: commas, periods, asterisks, hyphens, etc.]

  • Using periods in the city name will cause an error.

    • Acceptable: "St Petersburg" or "Saint Petersburg"

    • Unacceptable: "St. Petersburg"

E

Co-Applicants allowed?

Co-applicants are permitted-- see "NHP: Co-Applicants" article.

F

Who will receive the credit application email?

The application email will be sent only to the Primary Applicant.

G

Will Customer Receive a Cancellation Notice?

Cancellation Notifications are sent via email to the customer whenever an account is cancelled in the finance portal and has previously reached the M0 milestone. Included in the communication will be:

  1. LightReach account ID number

  2. EPC name (Org Name)

  3. Street address

Projects cancelled before reaching the M0 milestone, will not receive a cancellation notice.

H

Palmetto LightReach
Reserved Right to Cancel

LightReach reserves the right to cancel files which do not achieve installation after an extended period of time--technically 115 days or longer. LightReach does not actively enforce this, barring extreme circumstance with the Certified Developer (reference 6.1.5) Internally, this relates to our capital providers and funding allocation caps. In short, capital is committed/allocated when a contract is signed. If we, for example, had a bad-actor-CD sign 100 customers, and after 200 days, nobody was installed, this could prevent us from allocating those funds to other, actually valid transactions. While this scenario is an extreme fringe scenario, and would likely be dealt with at a portfolio level, it's important for anyone operating at a CD level to have this internal knowledge in back of mind as it pertains to the question of credit validity.

Cancellation Notifications are sent via email to the customer whenever an account is cancelled (post NTP but pre install) in the finance portal

Related Articles
NHP: Milestone Requirements
NHP: (M3) Title Milestone
NHP: Prepping to Sell and Setting Expectations
NHP: Activation (M2) Checklist
NHP: New Account Sales Flow
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