If you haven't heard of the PowerSaver Grant, you're in for a treat. This bonus to the FHA 203k renovation loan is meant to help home buyers - or homeowners who want to refinance and remodel - go green, save green and get green. Yes, the cliches flow freely, don't they?
With the PowerSaver Grant, borrowers using the FHA 203k to finance eligible energy-efficient upgrades to a home can actually have their closing costs covered by AmeriFirst Home Mortgage. That's about $2,000 for the average home. And remember: the homeowner is making energy efficient upgrades, so there's the monthly savings.
Of course, the whole deal hinges on a couple of things, the first is that the borrower is using the FHA 203k to finance the home and the renovations. The 203k loan is a mortgage option that finances remodeling & renovations directly into the FHA mortgage so it's one loan, one payment, one interest rate/APR.
Let's take a look at how this works by exploring 5 ways the PowerSaver Grant can help home buyers.
1) Whole-house weatherization/sealing (including ducts)
From weather strips to duct sealing, making sure airflow is going where it should - and not leaking where it shouldn't - is so important. Caulking around leaky window trim, weather strips on doors, sealing ducts from the furnace and spraying foam insulation behind window trim are all good steps. You can also have a professional help you find where the leaks are with a house fan that sucks the air through your house. See how that works here: Weatherization Tips to Help You Lower Your Energy Bills
2) Insulation upgrades
Ensuring you have the correct attic and wall insulation for your climate is a major step towards improving energy efficient ratings for a home. Knowing the right insulation depth and R factor will help. Correct ventilation does, too.
3) Furnace/AC upgrade
Obviously having a modern heating and cooling system in a house is so important, once your house is tight and insulated & ventilated correctly. An Energy Star-rated HVAC system is often the easiest way to go. However, researching efficiencies is also important. Homeowners need to know what they're getting into with a furnace, and make sure the furnace really stacks up to its claims.
4) Renewable energy upgrades
Some energy efficient upgrades can be truly green and renewable. Solar panels and wind turbines are popular and can help homeowners save on monthly bills. A geo-thermal furnace is another way to go green and use the Earth around you to heat your home.
5) Monthly savings, closing costs paid!
Finally, the PowerSaver Grant itself, coupled with the FHA 203k loan is changing energy efficient remodeling. The 203k loan can finance much of what is listed above. The mortgage rolls the costs of renovations, upgrades and home improvements right into one loan. This means the homeowner - new or refinanced - sees a much more affordable monthly payment option than credit cards or other short-term financing.
Add to the FHA 203k the PowerSaver Grant, and a home buyer could also have their closing costs paid by AmeriFirst Home Mortgage. That's usually about $2,000 for the average FHA 203k loan & buyer. There are rules and regulations on what can be financed and how much you have to spend. You can learn about that in the eBook you can download below.
In all, the PowerSaver Grant is changing energy efficient home remodeling in several great ways. Learn more about this grant program with AmeriFirst Home Mortgage, one of only a few lenders across the country offering this bonus to the FHA 203k.
Dan Moyle is the inbound marketing specialist for AmeriFirst Home Mortgage. Dan loves to help home buyers see the possibilities in the housing market. He also loves his blended family and motorcycles.
(creative commons photo credit: Flickr user StockMonkeys.com)