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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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.





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





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.

 





“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





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