Here are the credit requirements for a water heater lease, and how to run credit and send the contract in the Palmetto portal.
Credit requirements
Item | Requirement |
FICO | The higher of the customer's TransUnion and Equifax scores |
Credit inquiry | Soft pull. No impact to the customer's credit score, and the lease isn't reported as debt. |
Debt-to-income (DTI) | Not factored in |
Bankruptcy | None in the last 7 years |
SSN | At least the last 4 digits. Full SSN recommended for best results. |
ITIN | Not accepted in place of an SSN |
Credit checks | Up to 6 per account |
FICO minimum: contact your channel account manager for the current minimum.
Lease amount
Minimum: $1,800, enforced. A small tank swap may come in under the minimum and can't be leased.
Maximum: contact your channel account manager for the current maximum.
Term and payment
Term: 10 years
Escalator: 0%, 0.99% or 1.99% per year
Payment: fixed when the contract is signed
Autopay discount: a $15 autopay discount is built into the quoted payment. Paying another way adds $15 a month.
Card payments: carry a processing fee
Taxes: not included in the monthly payment. The customer pays them if assessed.
Running credit and sending the contract
Create the customer's account. Use an email that isn't already tied to a project at a different address. Each property needs its own email.
Check the customer and property info. Name and address must match what goes on the contract.
Enter the system design. Fuel type, type and size, plus the full price.
Get pricing and choose a quote.
Run credit. Run it with the customer, or email the credit application to them. Let the homeowner review and accept the disclosure.
Send the contract. It goes out by DocuSign, or the homeowner can sign in home.palmetto.com. The portal invite is sent at the same time.
Once the contract is sent, pricing and equipment are locked. Any price change needs a change order. See Water Heater: Change Orders.
Billing
The lease starts on completion date: installed, working, and permits signed off.
The first payment is due about 30 days after completion, and no less than 15 days after the first invoice.
Payments fall on the same day each month.
A $25 late fee applies starting 20 days after the due date.
Common questions
| Question | Answer |
1 | Can the homeowner claim federal tax credits? | No. Federal tax incentives aren't available to homeowners who lease. Local, state and utility rebates can still apply. |
2 | Does the lease show up on the homeowner's credit? | No. It's a soft pull and the lease isn't reported as debt, so there's no downside to checking whether a homeowner qualifies. |
3 | Are there alternatives to ACH? | No. ACH autopay is required at NTP. Cash, checks and credit cards aren't accepted for setup. |
4 | Why do I see "No pricing options available"? | Water heater pricing usually hasn't been added to your organization. Your org admin can add it, or open a Sales Support chat. See Water Heater: Getting Enabled. |
5 | Can I put a water heater on the same contract as HVAC? | No. Each product needs its own account and contract. You can add a water heater at an address that already has HVAC. |
6 | Is a utility bill needed? | No. |
Need help?
Text INSTALLER to 888-531-3327 or open a chat in the Palmetto portal. Homeowners can call 855-339-1831.