Loan programs to finance basic repairs, renovations and energy efficient improvements into your FHA home loan.
As you begin your home search, you will find that many of today’s homes for sale are bank-owned (REO) properties. Great deals can be found with these homes, because as you have probably noticed, they may also need some serious TLC. The out-of-pocket cost of these repairs can sometimes force home shoppers to pass up homes that would otherwise be perfect for their family’s needs.
The Streamline(k) and Energy Efficient Mortgage home loan programs may be perfect options for these types of homes, as it allows you to finance non-structural basic repairs and energy efficient improvements into an FHA home loan. Best of all, these repairs can be done to the home after you have already purchased it! In addition, both the Streamline(k) and Energy Efficient Mortgage home loan programs are available for refinances, allowing homeowners to finance needed repairs and improvements into their FHA home loan. Below are some of the benefits and eligible repair items:
Here is a partial list of eligible repair items with the Streamline(k) home loan program:
- Roofs
- Exterior decks, patios, porches
- Appliance purchase and installation
- Flooring
- Window and door replacements
- Exterior residing
Benefits of the Energy Efficient Mortgage:
- Can finance up to 100% of the energy efficient improvements*
- May be used for all property types
- Available for purchase or refinance
- Can be used on new or existing homes
- May be used in conjunctions with the Streamline loan program
- Can be used for energy improvements such as:
- Upgrade Existing Windows
- Upgrade Existing Heating and Air Systems
- Upgrade Insulation
- Plus many many more energy efficient improvements
With an Energy Efficient Mortgage, a qualified home energy rater must perform an analysis of the cost-effectiveness of the energy improvement using Home Energy Rating System (HERS) guidelines. The energy rater must provide the borrower and the lender with a written home energy rating report. This report will include an estimate of the current energy cost vs. the proposed energy costs with the improvements. Many home improvement stores have qualified home energy raters on staff. There are also a few home energy service networks with accredited home energy rater members, which can be found through an Internet search.
The fees charged to the borrower for the home energy rating with an Energy Efficient Mortgage, including the physical inspection, the HERS report, and any post-installation test, must be customary and reasonable for the area. These fees may be included and financed as part of the energy improvement upgrade if the entire package, including those fees, is cost-effective. If not, such fees are considered allowable closing costs.
Loan programs to finance basic repairs, renovations and energy efficient improvements into your FHA home loan.
As you begin your home search, you will find that many of today’s homes for sale are bank-owned (REO) properties. Great deals can be found with these homes, because as you have probably noticed, they may also need some serious TLC. The out-of-pocket cost of these repairs can sometimes force home shoppers to pass up homes that would otherwise be perfect for their family’s needs.
The Streamline(k) and Energy Efficient Mortgage home loan programs may be perfect options for these types of homes, as it allows you to finance non-structural basic repairs and energy efficient improvements into an FHA home loan. Best of all, these repairs can be done to the home after you have already purchased it! In addition, both the Streamline(k) and Energy Efficient Mortgage home loan programs are available for refinances, allowing homeowners to finance needed repairs and improvements into their FHA home loan. Below are some of the benefits and eligible repair items:
Here is a partial list of eligible repair items with the Streamline(k) home loan program:
- Roofs
- Exterior decks, patios, porches
- Appliance purchase and installation
- Flooring
- Window and door replacements
- Exterior residing
Benefits of the Energy Efficient Mortgage:
- Can finance up to 100% of the energy efficient improvements*
- May be used for all property types
- Available for purchase or refinance
- Can be used on new or existing homes
- May be used in conjunctions with the Streamline loan program
- Can be used for energy improvements such as:
- Upgrade Existing Windows
- Upgrade Existing Heating and Air Systems
- Upgrade Insulation
- Plus many many more energy efficient improvements
With an Energy Efficient Mortgage, a qualified home energy rater must perform an analysis of the cost-effectiveness of the energy improvement using Home Energy Rating System (HERS) guidelines. The energy rater must provide the borrower and the lender with a written home energy rating report. This report will include an estimate of the current energy cost vs. the proposed energy costs with the improvements. Many home improvement stores have qualified home energy raters on staff. There are also a few home energy service networks with accredited home energy rater members, which can be found through an Internet search.
The fees charged to the borrower for the home energy rating with an Energy Efficient Mortgage, including the physical inspection, the HERS report, and any post-installation test, must be customary and reasonable for the area. These fees may be included and financed as part of the energy improvement upgrade if the entire package, including those fees, is cost-effective. If not, such fees are considered allowable closing costs.