How Green Renovation Can Help Solve the Foreclosure Crisis
I was called yesterday by a gentlemen with an interesting idea on how we could use green renovation in conjunction with affordable housing programs to help turn some of the existing foreclosure stock into housing for low and moderate income families. To be quite honest it was a subject I hadn’t thought a lot about, my focus had been on green renovation on the upper end homes and traditional renovation for the lower end homes. However, the concept makes a huge amount of sense and I thank him for bringing it to my attention.
So much of today’s existing housing stock is in the form of foreclosures. Many of them aren’t livable and have been vacant for some time. What if we could get a movement going to help take these properties and provide affordable green renovations for buyers in need through FHA 203K renovation loans? Not only are you fulfilling the mission of FHA 203K, to restore and preserve America’s existing housing stock, but you are also incorporating money and energy saving green improvements into those homes. I’m not talking about solar panels and wind turbines here; I am talking about simple and affordable improvements like EnergyStar windows and appliances, low flow toilets and showers with on demand water heaters. Not only would these kind of improvements benefit the planet, but they would also help the low to moderate income home buyers save on their monthly energy bills. That makes their mortgage more affordable, lessens the likelihood they default on their mortgage and helps restore the integrity and quality of the neighborhood by ensuring that its homes are in good condition and OCCUPIED!
It seems like such a simple idea. Why are we not doing it? The government has shelled out well over a trillion dollars to bailout banks, brokerages and even car dealerships, but no one has thought that it might kill two birds with one stone to turn existing foreclosures into affordable green renovations that are cost effective and available for low to moderate income home buyers? Who am I to say, but I think that is a damn fine plan to help restore America’s housing market and get our neighborhoods back on track.
Jonathan Blackwell
404-551-3845
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You Don’t Have to Move Out to Move Up!
You Don’t Have to Move Out to Move Up!
By Jonathan Blackwell
When most homeowners want more space or a fancier place they call Real Estate Agent and start their search for a new home. It doesn’t have to be that way though, you don’t have to move out to move up! You can just RENOVATE.
Recently homeowners wanting new digs have found the going a bit tougher. Both Fannie Mae and FHA have instituted tough new rules aimed at homeowners looking to buy a new place and rent out their current residence until market conditions improve. For both you now must have significant equity, 25% and 30% respectively, to use the rental income on your current residence to qualify. That means that many people now have to qualify for both mortgage payments. Obviously, that simply isn’t possible for many homeowners. All is not lost for those wanting a bigger space though, they just need to look a little closer to home.
Both FHA 203K and Fannie Mae Homestyle Renovation Loans allow homeowners to refinance and renovate their current residence. They allow it all based on the after repair value of the renovations instead of what your home is currently worth. Only have 10% equity currently? That is not a problem for FHA 203K or Fannie Mae Homestyle renovation loans, they are only concerned with the equity you will have when you are finished with your renovations! So, how can you use a Renovation Loan?
New Freestanding Appliances, Complete Bathroom Remodel, Adding a New Master Bathroom, Upgrading Heating & Cooling Systems, New Siding, Fresh Paint Inside or Out, Attic Build-Outs, Finishing the Basement, Making the House Handicapped Accessible, Complete & Total Renovation, Adding a 2nd Floor, Adding a New Master Bedroom, New Deck & Outdoor Kitchen Area, Upgrading Doors and Windows, New Hardwood Flooring or New Carpet, New Lighting, Upgrading Plumbing & Electrical System, New Fixtures for Bathrooms and Kitchens, Opening Up a Floorplan, New Kitchen Counters, Vaulting Your Ceiling, Going Green with Solar Panels, and Building a New Garage to name a few!
There are hundreds of ways these loans can help you create the house you want without having to pack and unpack a moving truck. You can even add those green and energy efficient improvements you have wanted while you are creating your new space. If you are in Georgia, Alabama, Florida, Tennessee or Virginia and would like to discuss your FHA 203K or Fannie Mae Homestyle choices go visit our quick and easy Renovation Advisor now!
Jonathan Blackwell
FHA 203K Specialist
Hometown Lenders
404-551-3845
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