Springfield’s ReStore on Albany Street has changed its name. Its the same fantastic store, just with a more appropriate name. As their website states, “We’ve always sold eco-friendly used and surplus building materials at bargain prices—so we changed our name to EcoBuilding Bargains.”
Makes total sense to me!
Learn more at the EcoBuilding Bargains Website!
An Energy Efficient Mortgage (EEM) is a mortgage that rewards you for building or renovating a home with energy efficient features. EEMs allow borrowers to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans. This allows them to qualify for a larger loan amount and a better, more energy-efficient home. Never heard of it? I am not surprised.
Its been a pretty well kept secret, but its not new. It started off as an FHA limited pilot program. Its success caused Congress to enact the national Energy Efficient Mortgage Program in 1995.
Participation in the program has been growing steadily as word gets out and the emphasis on energy efficiency continues to build.
The backbone of the EEM program is the idea that a reduction in a homeowner’s utility costs — by enacting changes that maximize energy efficiency — allows a homeowner to pay a higher mortgage to cover the costs of the energy improvements as well as the mortgage itself.
The FHA offers insurance for these specialized mortgages for a homeowner to buy or refinance a home and incorporate the cost of energy-efficient improvements. As the homeowner, you don’t have to qualify for the extra funds and no down payment is required.
EEMs offer homeowners who otherwise might not be able to afford it a chance to revamp their homes, save costs by adopting energy-efficient practices and help cut down on pollution. Yet, they’re still relatively foreign to most homeowners.
“Although EEMs have been available in some states since 1980, they have been little understood or marketed,” according to HUD. “With EEMs, borrowers do not need to get a separate, costly loan for energy improvements when buying an existing home.”
Here’s an overview of the requirements homeowners need to be considered eligible for an Energy Efficient Mortgage:
The borrower is eligible for maximum FHA-backed loan, using standard underwriting procedures. The borrower must make a 3-percent cash investment in the property based on the sales price. Closing costs are not included in the 3- percent calculation but may be used to satisfy the requirement. Any upfront mortgage insurance premium can be financed as part of the mortgage.
Eligible properties are one- to four-unit current and new construction.
The cost of the energy-efficient improvements that may be eligible for financing into the mortgage is the greater of 5 percent of the property’s value (not to exceed $8,000), or $4,000.
To be eligible for inclusion in this 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 conducted by a home energy rating system or energy consultant. The cost of the energy rating may be financed as part of the cost-effective energy package.
The energy improvements are installed after the loan closes.
The maximum mortgage amount for a single-family unit depends on its location and it is adjusted annually.
There are three basic types of EEMs, so determining which one is best suited for your needs may require the help of an expert. Along with the FHA-backed loans for energy efficiency, the Veterans Administration also backs EEMs for qualified military personnel, reservists and veterans.
The mortgages are becoming more known and more popular as homeowners continue to look for meaningful ways to address rising fuel and energy costs. Take some time to evaluate your budget and whether the long-term cost savings associated with energy efficiency is something that’s right for you and your family.
To take advantage of these great energy efficient mortgage programs, talk to your mortgage broker today!
I don’t really want to get into the business of endorsing companies or products (aside from my own), but I had to mention the ReStore Home Improvement Center. Not only because of the fantastic service it is providing in the community, but also because its a non-profit organization!
From its website, ReStore’s mission is simple:
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They feature surplus or used building materials at bargain prices.
The well known do it yourself home improvement show “This Old House” featured the Albany Street store in an episode last year.
Not only can you purchase materials for home improvements there, but you can donate your surplus unused materials!
Also from the website:
“Are usable items being removed during your remodeling or construction project? Is your basement, garage or shop overflowing with stuff you can’t use but you know is too good to throw away?
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Donate your materials to the ReStore! (Try our convenient pick-up service.)
By donating, you can save useful materials from the landfill and help make home improvement more affordable for more people.
Donating can also help you:
As an added benefit, our contractors and other commercial donors notice that by working with the ReStore, they can better attract customers that care about the local community and environment.”
This is a fantastic local resource that we should value and support. Yeah those orange and blue big box stores are convenient, but why not drive a little farther to save some money and do something good for the planet, the local economy and for your own wallet?
Thank you to the folks at ReStore for everything they do to provide this fantastic service to the Pioneer Valley!
Restore Home Improvement Center
Photo from uglyhousephotos.com WHY?????
So your tub has hot pink tiles and the kid’s bedroom is Concord grape purple with an aqua marine mermaid border. All fine choices for your family, if you like that sort of thing. But not so much if you are planning on selling your home any time soon.
Everyone wants to live in a home that is personalized to their needs and tastes. But far too often these tastes conflict with the need or desire to sell the home when for one reason or another you need to move.
On the other hand, perhaps you have put off fixing that leaky shower fixture or the hole Johnny punched in the wall in the den when he tripped over the cat. Or maybe its that cranberry juice stain all over the living room rug that you’ve been hiding under an area rug for 5 years.
Whatever the case may be, you are now in a position where you want to market your home to potential buyers and get the best offer possible to sell your home. You have a decision to make as to whether to invest the time and money to re-tile, paint over, call a plumber, get out the spackle and trowel or simply show your place to the buyers “as is.”
Depending on the problem, this can be a very costly “fix”. But at the same time, you may lose significant selling power if your home gives off serious negative impressions to the buyers.
Houses are sold or not sold based almost exclusively on first impressions. If your home has good curb appeal, is clean and uncluttered and gives potential buyers a neutral pallet for which they can envision their own tastes, furnishings and lifestyle, then you have a serious leg up on the seller who refuses to depersonalize, declutter or invest in creating a positive first impression.
Regardless of what you do to address the problem, you need to approach it from the perspective of the buyer, not the seller. Imagine yourself walking into a home and how you’d react to the potential problem.
But do not just fix something for the sake of fixing it either. If you go for a cheap fix or a fix that doesn’t jive with the style choice of your potential buyers, you could be doing more harm to your chances of selling than good. The key to all of this is to ask yourself this question before you do anything: Is what I am doing to fix this problem going to ad a new problem for the potential buyers, who will likely want to change it again? If this is the case, then it might be better to just leave it as is and let them make the fixes themselves.
I highly suggest that when faced with this type of dilemma that you get the opinion of some real estate professionals. Talk to your listing agent about the issues, see what he or she has to say about the impact it will have on the sale. Don’t forget that your realtor has a lot invested in selling your home too. He or she will be glad to help you stage your home to maximize its appeal to the buyers.
