Renovating 1960′s “Custom Ranch” Homes: FHA 203k Renovation Loan Ideal For Replacing Flooring, Windows, Doors, Roof, Electrical And Water Pipes

18 02 2011

 

  • Carpeted in a smelly, worn-out brown plush, which the dog would sniff in certain places and then roll in it… REPLACED WITH TILE
  • The original central air conditioner and furnace still worked but made noises… REPLACED WITH ENERGY EFFICIENT UNIT
  • The roof had white stones to reflect sunlight but the plywood under the stones had deteriorated…REPLACED WITH NEW ROOF
  • No insulation in the attic with rafters covered with heavy tin foil…INSTALLED 12-INCH THICK INSULATION
  • Original electrical service was 100 amps…UPGRADED TO 200 AMPS TO SUPPLY MORE OUTLETS IN KITCHEN 
  • Water pipes were galvanized iron which were rusting….REPLACED WITH COPPER PIPES AND/OR CPVC PLASTIC
  • Windows were single pain aluminum….REPLACED WITH DUAL GLAZED VINYL WINDOWS
  • Small windows and doors made home dark…REPLACED WITH ENERGY-EFFICIENT FRENCH DOORS

For more: 
http://www.mydesert.com/article/20110218/LIFESTYLES1101/102170361/1067/lifestyles11/-Life-Modernism-can-money-pit
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Categories : 203k, Contractors, FHA, Financing, Home Energy Rating, Kitchen, Mortgage Insurance, Rehabs, Remodeling, The 203k Guy, Windows

Green Home Renovation: FHA 203k Renovation Loan Can Be Combined With FHA “Energy Efficient Mortgages” For Maximum Energy Efficient Improvements

20 12 2010

Energy Efficient Mortgage Program

- -
 Information by State
 Print version

 
Return to EEM Home

FHA’s Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.

Purpose

In 1992, Congress mandated a pilot demonstration of Energy Efficient Mortgages (EEMs) in five states. In 1995, the pilot was expanded as a national program.

EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD. FHA insures loans. FHA does not provide loans.

  

Type of Mortgage:

EEM is one of many FHA programs that insure mortgage loans–and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get). Borrowers who obtain FHA’s popular Section 203(b) Mortgage Insurance for one to four family homes are eligible for approximately 96.5 percent financing, and are able to fold closing costs and the upfront mortgage insurance premium into the mortgage. The borrower must also pay an annual premium.

EEM can also be used with the FHA Section 203(k) rehabilitation program and generally follows that program’s financing guidelines. For energy efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD’s Title I Home Improvement Loan program.

How to Get a EEM:

To apply for an FHA insured energy efficient mortgage, contact an FHA approved lender.

Eligible Customers:

All persons who meet the income requirements for FHA’s standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. The cost of an energy inspection report and related fees may be included in the mortgage. Cooperative units are not eligible.

EEM can also be used with FHA’s Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one unit detached houses.

Eligible Activities: EEM can be used to make energy efficient improvements in one to four existing and new homes. The improvements can be included in a borrower’s mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. Other eligibility requirements may be found in the Homeowner’s Guide.

Eligibility Requirements

-   The borrower is eligible for a maximum FHA insured loan, using standard underwriting procedures. The borrower must make a 3.5 percent downpayment. This 3.5 percent downpayment is based on the sales price or appraised value. Any upfront mortgage insurance premium can be financed as part of the mortgage.
-   Eligible properties are one to four unit existing and new construction. EEMs may be added to some other loan types, including streamline refinances.
-   The cost of the energy efficient improvements that may be eligible for financing into the mortgage is the lesser of A or B as follows:A. The dollar amount of cost-effective energy improvements, plus cost of report and inspections, orB. The lesser of 5% of:

  • The value of the property, or
  • 115% of the median area price of a single family dwelling, or
  • 150% of the conforming Freddie Mac limit.
-   To be eligible for inclusion in the mortgage, the energy efficient improvements must be cost effective, meaning that the total cost of the improvements is less than the total present value of the energy saved over the useful life of the energy improvement.
-   The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package.
-   The energy improvements are installed after the loan closes. The lender will place the money in an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved.
-   The maximum mortgage limit for a single family unit depends on its location, and it is adjusted annually. To find FHA maximum mortgage limits for any county in the country. The cost of the eligible energy efficient improvements is added to the mortgage amount. The final loan amount can exceed the maximum mortgage limit by the amount of the energy efficient improvements.

Technical Guidance:

EEM is authorized under Section 513 of the Housing and Community Development Act of 1992. Program regulations are listed on the EEM mortgagee letter web page.


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Categories : 203k, Energy Efficient Improvements, Energy Efficient Mortgages, FHA, Home Energy Rating, HUD, Mortgage Industry, Rehabs, Remodeling, The 203k Guy

FundMyRemodel.com Energy-Efficient Homes Update: HUD And FHA To Pursue Programs To Facilitate Energy-Efficient Renovations Of Homes With FHA 203k Loan Remaining The Best Financing Available To Most Homebuyers And Homeowners

10 11 2010

 Vice President Joe Biden and U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.

For more:  
http://switchboard.nrdc.org/blogs/phenderson/white_house_and_hud_annouce_sm.html


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Categories : 203k, Contractors, Energy Efficient Improvements, Federal Government, FHA, Financing, Home Energy Rating, Homes, Refinance, Rehabs, Remodeling, The 203k Guy

FundMyRemodel “Green Homes”: 1950′s Palm Springs Home Is Renovated Using Sustainable Materials And Energy-Efficient Design (Video)

8 11 2010

A look at a mid-century green remodel of a modern home in Palm Springs by architect Eric Corey Freed and contractors Green Guys Construction.

Prepared for the 3rd Annual Palm Springs Sustainability Summit.

SOURCE: KPSP News 2 – Eye on the Desert
ARCHITECT:
http://www.organicarchitect.com

CONTRACTOR:
http://www.greenguys.net

DATE: November 2, 2010


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Categories : 203k, Architects, Contractors, Design, Energy Efficient Improvements, Green Homes, Home Energy Rating, Refinance, Rehabs, Remodeling, Videos

FundMyRemodel.com Bathroom Renovations: Kohler “Sustainable Design” Toilets, Fixtures And Showers Are Examples Of “Green Improvements” (Video)

23 09 2010

A suburban New Jersey couple prepares to remodel their water-guzzling master bathroom into a stylish water-saving retreat.

Watch this New Jersey couple’s sustainable remodel take shape, as their marble-clad master bathroom becomes a chic and modern oasis.

 


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Categories : 203k, Design, Energy Efficient Improvements, Energy Star, Fixtures, Home Energy Rating, Rehabs, Remodeling

“FundMyRemodel.com” Green Homes: Tuscon Home Harvests Rain Water, Uses Runoff From Showers, Laundry And Sinks For Irrigation And Has A 3.2-Kilowatt-Hour Solar Panel System

10 09 2010

“…the home should become the first in Tucson to receive the U.S. Green Building Council’s LEED certified platinum rating, said Rich Franz-Ünder, Pima County’s green building program manager. LEED stands for Leadership in Energy and Environmental Design…”

A north-side home, built by a father-and-son team, is slated to be the first in Southern Arizona to receive the highest rating for energy efficiency given by the U.S. Green Building Council.

The first house in Southern Arizona likely to receive the highest rating, LEED certified platinum, for energy efficiency. Photo courtesy of NICOLE BRULÉ-FISHER

The house at 1240 E. Blacklidge harvests rain water, uses runoff from showers, laundry and dishes to irrigate desert landscaping, and has a 3.2-kilowatt-hour solar panel system.

Of course, the first thing a meticulous, eco-friendly homebuyer may notice when walking up to the house is the fountain bubbling in the front yard. Fountains use power and lose water through evaporation.

But Drew Lutz, who built the house with his father, David, said the two balanced the energy cost of each component with the comfort it may provide. Someone, after all, is going to live there. The fountain adds aesthetic appeal and drowns out the street noise from nearby Mountain Avenue, he said.

“The biggest thing is compromise,” Drew Lutz said. The ultimate aim is to sell the house and make a profit.

The 2,000-square-foot house – listed at $440,000 – is no doubt a higher-end product. It has glossy, scored concrete floors, bamboo cabinets and large insulated windows. It’s surrounded by corrugated metal fencing accented with caged rock pillars. Drew Lutz said he and his father, who together make up Lutz Construction, wanted to incorporate a new look into Tucson’s traditional feel.

“I feel like Tucson is lacking in modern design,” he said.

In the coming weeks, the home should become the first in Tucson to receive the U.S. Green Building Council’s LEED certified platinum rating, said Rich Franz-Ünder, Pima County’s green building program manager. LEED stands for Leadership in Energy and Environmental Design.

For more:  
http://azstarnet.com/real-estate/article_bff9ecfa-469f-55f3-a6b1-24043fb4f3f0.html


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Categories : Design, Energy Efficient Improvements, Energy Star, Green Homes, Home Energy Rating, Homes, Landscape, LEED, Solar

Green Home Appliances Update: Miele Introduces “Smart Washing Machine And Tumble Dryer” That “Start Automatically” When Electricity Is Cheapest

3 09 2010

 The first two appliances featuring smart-grid functionality will be a washing machine and a tumble dryer. The models can also be fitted with Miele’s gateway communication module, providing access to the appliances through a PC and the ability to monitor electricity rates.

Miele has announced its new smart grid ready domestic appliances at IFA 2010. These appliances have been designed to start automatically when electricity is cheapest, offering consumers energy savings.

After adding tariff data, the consumer can activate the Smart Start function in the appliance display – once the earliest starting time and the latest finishing time have been programmed in. Once installation is complete, the appliances will automatically run when electricity is cheapest. “Over the coming years, we are likely to see considerable variance in electricity rates in Germany,” says Peter Hübinger, Managing Director of Electronic Production at Miele. “With smart grid ready appliances, Miele is offering a highly relevant and future-proof solution.”

For more:  
http://www.gizmag.com/miele-washing-machinet-knows-when-electricity-is-cheap/16203/?utm_source=Gizmag+Subscribers&utm_campaign=96f04a5cfd-UA-2235360-4&utm_medium=email


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Green Homes: High Energy Star Ratings On Home Appliances Can Reduce “Home Energy Consumption By 10-50%”

24 08 2010

 It’s time for you to replace your old appliances with energy-efficient ones, especially those with an Energy Star certification. By doing so, you are able to do three things: save more, reduce home energy consumption by 10-50%.

From energystar.gov, “Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices.  According to Energy Star, Americans saved enough energy in 2009 alone to avoid greenhouse gas emissions equivalent to those from 30 million cars — all while saving nearly $17 billion on their utility bills. To ensure that all products are energy-efficient, Energy Star sets forth energy-efficient requirements which are based on the following set of key guiding principles (from energystar.gov):

  • Qualified products must deliver the features and performance demanded by consumers, in addition to increased energy efficiency.
  • If the qualified product costs more than a conventional, less-efficient counterpart, purchasers will recover their investment in increased energy efficiency through lowering utility bills within a reasonable period of time.
  • Energy efficiency can be achieved through broadly available, non-proprietary technologies offered by more than one manufacturer.
  • Product energy consumption and performance can be measured and verified with testing.
  • Labeling would effectively differentiate products and be visible for purchasers.

You may have a high-end model refrigerator that’s been with your for ten years or may be even more, but it’s been eating your budget ever since. Newer models of appliances are built with energy-saving features that allow you to save from $100-200 of energy costs annually. Energy-saving appliances can be expensive but you can save more on your electric bills in four years or so which substantiates for those extra costs.

If you replace your older model with an Energy Star high-efficiency dishwasher, you can definitely save money on your electric bill since you’ll be using 25% less energy than an older model. Other than that, you’ll also be saving 5,000 gallons of water annually. Thus, you can save money, energy and water all at the same time with an Energy Star high-efficiency dishwasher.

When you’re going “greener”, saving water is your greatest contribution to mankind and to planet Earth. Experts have forecasted that fresh water may become planet Earth’s most valuable resource. Saving up water today will give everyone enough water in the near future.

Almost all American homes are equipped with a washer and dryer. However, utilizing a 10-15 year old washer or dryer, will only make electric bills higher than what you can afford to pay. Purchasing green appliances, such as green washers and dryers can be costly but in the long run, you get to save a lot.

So, getting your old washer out of your home and swapping it with a horizontal axis washing machine, is your smartest and the most economical choices you’ll ever take for a longer term. The replacement is a sure opportunity for you to save up $120 a year or even more on your electric bills, which can still compensate for the price of your newly bought horizontal axis washing machine. Aside from saving up energy and money, these machines have other advantages as well.

Horizontal axis machines can fit into smaller spaces. Other than this, they’re quieter and allow you to wash large loads of laundry while using lesser amount of detergent. That way, you’re only putting fewer chemicals into your home’s waste water stream.

On the other hand, getting a dryer that’s equipped with moisture and temperature sensors is also one of the best green choices you’ll be making. Unlike other dryers that run for a set time, a moisture-temperature-sensor-equipped dryer will shut off earlier if the clothes inside it are already dry enough. Other than your energy savings, you can even save your clothes from possible wear and tear and you don’t have to keep on replacing them as well.

Compared to conventional models of dryers, sealed combustion gas clothes dyers use up lesser energy. It’s also beneficial for your health since they expel only a few gases that get into your home. But among all the dyers mentioned, nothing could ever beat the greenest and the most traditional way of drying your clothes.

For more: 
http://www.ecoinstitution.com/green-news/energy-efficient-appliances-should-be-main-green-consideration/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+GreenNewsAndEcologicalAwareness+%28Green+News+and+Ecological+Awareness%29&utm_content=Yahoo%21+Mail


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Categories : Bathrooms, Design, Energy Efficient Improvements, Energy Star, Financing, Green Homes, Home Energy Rating, Kitchen, Refinance, Rehabs, Remodeling

Home Energy Efficiency Renovation: Installing A “Solar Photovoltaic (PV) System Can Cost Only 10-20% Of Total Expense After Tax Credits And Savings (Video)

21 08 2010

As the world focuses more and more on global warming and carbon emissions, homeowners are left wondering how to best do their part to help. Beyond just making your home more energy efficient, there is another step that is becoming more and more popular — solar photovoltaic (PV) systems.

A PV system is a series of panels mounted on the roof of your home. These panels convert sunlight directly into electricity with no moving parts, no fuel, and no pollution. Is a solar PV system right for you? GreenHomes can help you decide by examining the pros and cons.

The biggest negative is that PV systems are somewhat expensive — an average of $20,000 to $30,000. Fortunately, federal and state government incentives and tax credits have been established to help pay up to 40% of your PV system, and more legislation is being passed every year to continue to increase this amount.

The benefits of solar are many and tend to outweigh the negative. Financially, solar systems provide several short and long term advantages: * You produce electricity, so you do not have to pay power companies * Once you pay off your system, the electricity you produce is yours, free of charge * If electricity prices rise more than expected, your system cost stays the same, increasing your return on investment and saving you even more * A solar system adds value to your home — for every dollar you spend to improve the efficiency of your home, the home’s value increases by $20 or more * Some insurance companies are starting to offer discounts on premiums for customers with solar

However, even more impressive are the environmental benefits: * Solar power leaves the air as it is, contributing no radiation, carbon, or other air pollutants, as does burning coal, gas, or oil, or nuclear * Solar can help fight global warming and reduce the need to build new power plants (most people don’t realize more than 50% of U.S. electricity is produced by burning coal!) * Solar produces no noise or waste in its production * Solar does not use a lot of land, since it is usually mounted on top of buildings * The solar fuel supply is unlimited — the sunshine will not diminish its supply by using it, unlike the fuels that supply 98% of the electricity you buy

To magnify the benefits of a solar PV system, the first thing you should do is figure out how to reduce your energy use. The more efficient your home, the smaller PV system you will need. Call an experienced contractor like GreenHomes to get a complete home energy assessment — they will provide you with an honest set of recommendations.

So, the bottom line is, if you want to watch your utility meter spin backwards, protect the environment, or just be more energy independent, solar PV just may be right for you!

For more information on Solar PV and Home Energy Audits go to:
http://www.greenhomesamerica.com/sola…


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Categories : Design, Energy Efficient Improvements, Energy Star, Green Homes, Home Energy Rating, Solar, Videos

“Fund My Remodel” Asks: What Questions Need To Be Answered Before I Buy “Green Building Products”?

20 08 2010

 ”…While the industry has made real progress in providing us with green products and backing up their performance claims, product selection will continue to be one of the most critical challenges you will face in meeting your green missions…”

Here are the first 12 questions you should ask about any green building product you’re evaluating—before you make your selection:

  1. How will it perform its basic function as a building material or product?
  2. How does it compare with products I use now?
  3. Is it code approved? 
  4. Is it third-party certified? 
  5. Will it contribute toward project certification? 
  6. Is it available? 
  7. How will it affect my pricing? 
  8. Will it increase my level of risk or liability? 
  9. How will it improve the level of performance of my homes? 
  10. How will it contribute toward sustainability? 
  11. Will it require new sequencing or installation skills/trades? 
  12. Is it worth the investment for the benefits?

For more: 
http://www.ecohomemagazine.com/news/2010/08/12-questions-to-ask-before-choosing-a-green-building-product.aspx


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Categories : Contractors, Design, Energy Efficient Improvements, Energy Star, Green Homes, Home Energy Rating, Kitchen, Remodeling, Solar, Windows

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