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The world changes at a dramatic pace. From skyrocketing energy prices to a planet showing years of abuse, things are not what the used to be. As potential home buyers and current homeowners we need to be aware of the trends in home ownership so we can protect and preserve our biggest asset, our home. We need to be aware of how we can use FHA 203K renovation loans to renovate green and create huge equity in the process.

There are a number of reasons why the green home trend is gaining steam and they all make perfect sense. First, and most obvious, green homes use less energy which saves on monthly energy bills every month the home owner owns the home. Second, reducing energy consumption and using renewable energy helps protect and grow America. Finally, and most people aren’t aware of this one, GREEN HOMES sell FASTER and at a PREMIUM!

Our home is the place where we spend the most time, where we consume the most energy and our biggest asset all in one. Our homes are responsible for huge outlays of money and responsible for preserving and creating wealth for our families. Now is the time to do you part, help the planet, take advantage of the incredible tax and utility company credits, increase the value of your home and prepare yourself for energy price increases by financing your energy saving improvements with FHA 203K renovation financing.

FHA 203K renovation loans have been around for decades, but they have recently found a new use in helping people go green. How do they work? The process is simple really, one loan closing with money to purchase the property or to payoff current mortgage debt and an escrow account for repairs. Everything based off “after repair value” instead of current value to ensure you have room to complete the renovation. Loans over $35,000, Full 203K’s, are facilitated with the aid of a HUD approved consultant designed to help administer contractor draws and insure repairs are done to FHA specifications. Loans under $35,000, 203K Streamlines, don’t require a consultant and repairs can be done by the borrowers chosen contractor or, in some cases, the borrower themselves. FHA awards benefits in terms of higher allowable debt to income ratios along with loan amounts that can exceed FHA statutory limits go green improvements. So, how can you use the FHA 203K to go green?

1.) Green Up Your Appliances — FHA 203K loans will finance new free standing appliances for your home. Why not use that opportunity to buy EPA recommended ENERGY STAR appliances? Imagine beautiful stainless appliances that save you a bundle in monthly energy costs.

2.) Save Water, Save Energy — You can finance brand new low flow toilets as well as tankless water heaters. Low flow toilets use less than half the water that older models do and tankless waters provide unlimited hot water without all the wasted energy of a constantly running water heater.

3.) Want New Flooring? — Opt for sustainable bamboo flooring. Bamboo reproduces itself to maturity in 5 years as opposed to the 40-100 years than normal hardwoods take. Make sure and opt for formaldehyde free glues.

4.) Renovate, Reuse, Recycle, Restore — When you build new you are using new materials, but when you renovate you have the opportunity to reuse older materials that might have found their way into a landfill otherwise. Renovation is the definition of green because you can restore, recycle and reuse materials already in use.

5.) Solar Panels — Solar is one of the easiest ways to dramatically cut monthly energy bills. Installing solar panels is so encouraged by HUD that they will allow you to exceed statutory loan limits to do so. In many cases the Federal, State and Utility company tax credits will pay for a good portion of the purchase and installment of solar panels. The rest we can finance. Yep, FHA 203K covers solar installation as well!

6.) Better Insulation — An obvious choice for a green home, insulating your home better can help you save thousands on energy bills.

7.) Choosing Green Building Materials — A key aspect of any green FHA 203K renovation is the selection of environmentally friendly building materials. To reduce transport pollution and energy costs go local first. The second thing to look for is recyclable materials such as Glass, Terrazzo, Ceramic and Porcelain.

These are just a few of the myriad of green renovation choices you can finance with an FHA 203K renovation loan. There are literally hundreds of other ways to green your home. Let a FHA 203K renovation loan work for you! For more green renovation tips visit GoGreenWithFHA.com and sign-up to receive our tips and alerts or contact me via the contact info below.