The FHA 203k Renovation Loan Is The Real “Green Home Loan” As Energy-Efficient Improvments And Non-Toxic Building Materials Can Be Combined To Into One Renovation Transaction

7 06 2011
  • A “Green Home” conserves energy and uses of non-toxic building materials
  • The conservation of energy saves on heating and cooling costs
  • The of non-toxic materials is very important for health and environmental reasons
  • Energy inefficient homes increase the overall monthly costs of a home
  • The use of toxic materials can damage health and actually create serious health problems like asthma, allergies, skin issues, headaches, eye irritation and dizziness
  • The FHA 203k Rehabilitation mortgage allows a borrower to purchase or refinance a home while financing the costs of renovation to the property
  • A home renovation can utilize non-toxic building materials such as non-VOC (volatile organic compounds) paints; sealants that contain polyether rather than urethane or silicone bases; plywood that is free of formaldehyde; and natural clay plaster for walls instead of drywall (gypsum board)
  • This turns a “K” into a “Green K”, helping a borrower create a much healthier environment for the family living in the property
  • The FHA 203k can significantly reduce the time required to purge the market of real estate-owned (REO) and bank-owned stock
  • The REO stock move faster and the banks could sell their REOs for higher prices
  • Because the condition of a typical REO property is often quite poor, an owner-occupied homebuyer won’t have the cash to fix it up
  • The bank would have to drop the price drasticly to attract investors with the cash to renovate it
  • But the homebuyer who uses an FHA 203k Renovation loan can pay a higher price and have the money to renovate

For more:  http://nationalmortgageprofessional.com/news25436/help-clients-go-green-fha





Green Home Renovation: Australian Home Builder Creates Water-Conserving House That Captures And Treats 100% Of Its Own Water

25 05 2011

 

  • Many areas of Australia are operating under severe water restrictions
  • Architects and builders throughout Australia are incorporating advanced water-efficient measures that U.S. water experts point to as practical solutions for our own looming crisis

    The collection tanks feed into the main 32,000-liter tank at the back of the house, where the water is filtered before use via the chemical-free Ecotrol-Radfire system from Australian manufacturer Puretec. The ultraviolet-light treatment destroys microorganisms found in unchlorinated water such as bacteria, viruses, mold, and fungal spores. It operates at a flow rate of 91 liters per minute.

  • Builder Joe Mercieca produced a user-friendly and extremely water-conserving house that won last year’s GreenSmart Award for Water Efficiency from the Australian Housing Industry Association
  • The house, completed last April, captures and treats 100% of its own water, making use of it twice inside the house before employing it for irrigation
  • The whole-house water processing system cost $54,000 (about $55,300 in U.S. dollars)
  • For emergency purposes, the house is tied in to the municipal water system
  • But the reservoir tanks hold a 250-day supply of water so that even with no rainfall his family of five could live in the home for more than six months without tapping into the town’s water supply
  • Rainwater collects on the 3,700-square-foot home’s four slanted and curved corrugated metal roofs and flows into three tanks
  • It is screened and gravity-fed into a 32,000-liter main tank at the rear of the house
  • There are four tanks are capable of holding 90,000 liters
  • The water in the main tank is pressurized and pumped into the house for showers, cooking, drinking, and dish washing
  • To bring it to drinking water standards, it is cartridge particle- and UV-filtered before entering the house
  • A compact greywater system re-treats wastewater from this first round of use and prepares it for washing laundry or cars, toilet flushing and above-ground garden watering
  • A 3,000-liter polyethylene tank at the back of the house holds the treated greywater
  • Once it is utilized a second time, the water diverts into the blackwater system’s 1,500-liter underground tank
  • This water undergoes a sanitizing process with the wastewater irrigating the site’s 5 acres of lawns and gardens
  • The house has no access to the municipal sewer system
  • The home is also miserly in how much it uses, with dual-flush toilets, low-flow faucets and showerheads, and an ultra-efficient washing machine and dishwasher
  • The fixtures are certified to a minimum 4-star rating out of 6 in the country’s Water Efficient Labelling and Standards (WELS) initiative, a joint program of federal, state, and local governments.

For more:  http://www.ecohomemagazine.com/water-conservation/self-sufficient-down-under.aspx





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.





Green Home Remodels And Renovations: Contractors And Architects Must Educate Homeowners On The Most Effective Way To Maximize A Home’s “Geography, Structure, Systems And Aesthetics”

17 12 2010

The FHA 203k Renovation Loan is the only true Green Home loan.

The remodeling contractor has to educate the homeowner to take the most effective approach for the project.

  • Geography :  “If you’re building a new home, the lot is the most important thing. If you’re doing a retrofit, you have to respect the existing architecture. You have to understand where the home is, what direction it faces, what you may need to change about the overhangs, things like that.”
  • Structural: “A rammed earth house may work great in New Mexico but it’s perfectly worthless in Michigan. You have to respect the structural aspects. People read about a certain system and want to build their addition in that way, but I have to tell them I can’t build that for you in this state. I’m in the Mid- Atlantic region where we have a mixed-humid climate that is just vicious to build in. You have to be on your toes to know what you’re designing in that market.”
  • Systems: “If you have a super air-tight house you don’t need a huge mechanical system. Or if you can use radiant instead of forced air or you can use less plumbing, or if you’re using solar thermal you don’t need as big a water heater. The structure will tell you a lot about what kind of systems to use.”
  • Aesthetics: “Too often homeowners start with the aesthetics, but that’s stuff you can go back and change. You have to know the systems first before you pick out recycled glass tile or a sustainable bamboo floor.”

For more:  http://www.proudgreenhome.com/article/178202/Successful-green-remodeling-comes-down-to-education-and-compromise





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





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





Green Home Renovation: Fall 2010 Issue Of “EcoHome” Features Alex Wilson, Founder Of Environmental Building News (EBN) And Nationally Recognized Champion Of Sustainable Building

31 10 2010

CLICK ON "ECOHOME" TO VIEW ONLINE EDITION