5 Energy Efficient Improvements To Make with FHA 203K Loans

green fiberHaving recently attended West Coast Green, we couldn’t help but thinking how this whole mortgage crises set the Green building movement back a few years. Unfortunately people will think about getting their loan mod or forbearance before they think about buying formaldehyde free cabinets or installing a water catchment system. The thing that many people don’t realize is that with the right property (and loan officer) buyers can use the FHA 203K loan to improve a home with Green elements.

In terms of Green building and Green interiors, people always get fixated on the energy savings aspects. True, much of Green building centers on energy (and savings) but don’t overlook the health benefits (like using zero VOC paint)

With the 203K loan in mind, here we listed 5 Green improvements that can improve a home, save money and increase the value:

1-    Go Energy Star – Energy Star appliances remain the way to go to not only cut down on an energy bill but it works as a plus for the planet as well. Some Energy Star appliances can chop 20% of a monthly energy bill and they often cost about the same as their inefficient cousins.

2-    Insulate baby Insulate – With winter looming, it only makes sense to either add or upgrade the walls and the attic. Many Green insulation options such as Bonded Logic to soy-based polyurethane can be found.

3-    Water Water Everywhere – Things like low flow showerheads (which should be a given these days) represents an inexpensive fix but think about low flow toilets, tankless hot water heaters, and for the more adventurous a water catchment system.

4-    Replace those Windows – Anyone that has ancient leaky windows might consider replacing them. The low–E, dual pane windows continue to hit the market at a fast clip. To us they represent a no-brainer as they not only preserve energy costs but they cut down on outside noise as well. Typical Eco-Star windows only cost about $15 more then their leaky brothers.

5-    Not to many people in the Bay Area have those old (pre 1992) inefficient furnaces that have a standing pilot light but consider sending it out to pasture (not the junkyard but some place like Building Resources) as they waste abut 35 percent of the fuel the use. Better to use the 203K money for a “condensing furnace” with annual efficiency of at least 90 percent. That number along with the possible 27 percent savings on a heating bill definitely sounds better to us.



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2 Comments

Filed under Loan Modifications, Mortgages

2 responses to “5 Energy Efficient Improvements To Make with FHA 203K Loans

  1. First I want to thank you for allowing me to place a comment on your site.
    I am a state of Florida certified general contractor, an FHA registered inspector and a state of Florida certified home inspector. If you visit my site and leave a comment I will approve it thereby providing a linkback to yours.

    Energy saving installations of double paned and impact resistant glass will improve the value of a home. The are other things that a home owner might consider as value producing improvement. For my money I like a standing seam metal roof on a home for two reasons if it is installed in white FPL will provide an energy star rating and the last I checked a forty cents on the dollar rebate. Additional insulation in the attic is always a good idea and can be done at a reasonable cost using a blown-in process.

    • ladyrock

      You’re welcome. We do our best to educate people and find solutions for their problems. Please feel free to spread our blog info to anyone you know.

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