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Consider Building An Eco-Friendly Home Instead Of Renovating

CFL lighting, Low-E windows, Radiant Barriers. Just a few short years ago, these terms didn’t exist in the realm of home building. But these days, they’re integral components in an eco-friendly home building strategy.

 

With rising fuel costs and an increase in air pollutants, it is becoming more and more important to build homes that are energy efficient and environmentally sound. Eco-friendly home building is one of the most quickly growing sectors of the construction industry, and with so many benefits, it’s hard not to understand why.

 

What’s Different about an Eco-Friendly Home?

 

An eco-friendly house helps to conserve our planet’s natural resources. It uses less energy, conserves water and provides an interior living environment that is healthier and more comfortable than a house that’s built with traditional methods and products.

 

Eco-friendly houses feature innovative framing techniques and the latest advancements in insulation. They also feature ENERGY STAR appliances, low-VOC emission paints and carpeting and much more. All this adds up to a more comfortable living environment with less impact on the environment and less wasting of energy.

 

Conserving Water with an Eco-Friendly Home

 

An eco-friendly home helps conserve water with faucets and shower heads that are high-performance, water-saving fixtures.

 

How Much Can an Eco-Friendly Home Save Me?

 

The amount an eco-friendly home can save you varies by region, as climates can be drastically different. However, no matter where you live, the energy-efficiency of an eco-friendly home can add up to some very substantial energy – and financial – savings.

Article Submitted by Beazer Homes.  Neither Beazer Homes nor the website owner received any financial consideration for this article:

 

Beazer Homes is a leader in the eco-home building industry. Their eSMART homes are available in three variances – Standard, Plus and Green. Beazer new homes feature the latest technological advances in energy efficiency and home building design and offer an affordable solution to eco-friendly home building. To learn more about Beazer’s innovative eSMART homes, visit www.Beazer.com.

Mortgage Loans to IRAs Available For Real Estate Investors

Investors with money stuck in an IRA,or old employer's 401-k account, have traditionally shunned real estate as an investment.  Custodial fees were high and there was no way to leverage the property through an IRA.  There may be a solution.

Consider a non-recourse, loan to the IRA.  Real estate investors can get a commercial loan, directly to their Individual Retirement Account, through our IRA mortgage program.  A brief rundown:

• the mortgage is non-recourse
• down payment of 35% required (50% down payment in certain states)
• ARM products and fixed rate loans available
• rates are typically higher than conforming mortgage rates
• 25 year amortization only

Not all IRA custodians will be able to administer real property holdings.  A short list of custodians for real estate investments includes:

Lincoln Trust Company 
Trust Administration Services Corporation
PENSCO Trust Company
Sterling Trust Company
Equity Trust Company
Sunwest Trust Company
Self-Directed IRA Services, Inc.
Provident Group

Renovation Financing Can Be Combined with Energy Efficient Tax Credits This Year

Renovation loans can provide financing for energy efficient improvements, which under the American Reinvestment and Recovery Act of 2009 could qualify for a federal tax credit equal to 30% of the cost of the improvements.  There are two types of renovation credits:

Energy Efficient Projects:

The tax credit is limited to $1,500 per home (or $5,000 purchases); unused credit doesn't "carry over".  If tax liability is less than $1,500, the unused tax credit is not "refunded".  All renovation projects must have qualifiying products placed into service prior to December 31, 2010.Not all EnergyStar products qualify.  The list of qualifying products is not limited to but includes:

• windows and doors are most common renovation projects
• some gas or propane water heaters qualify
• certain roofs could qualify for tax credit
• some insulation products qualify for tax credit

Alternative and Renewable Energy Systems:

This credit has no upper limit and may be carried over into subsequent tax years through 2016.  A partial list includes:

• solar water heaters
• solar panels (restrictions apply)
• small wind energy systems
• geothermal heat pumps
  

Renovation loans, specifically designed for financing energy efficient improvements are available through FHA or Fannie Mae.  Energy Efficient Mortgages (EEM) allow for loan amounts to exceed the purchase price of the home for certain improvements.  Combined with the tax credits, this can make the purchase of a home in need of renovation less costly than purchasing a new home.

You might begin the research for your renovation project by using our EnergyStar Home Energy Yardstick Calculator.  Contact us for more information about EEMs.