Thursday, May 31, 2012

How Making a Foreclosed Home Green to Enjoy Rebates and Incentives?

One can become financially capable of paying for the mortgage of a foreclosed house by turning a home into something green and energy-efficient. By doing so, the homeowner can get to enjoy 100 percent conservation subsidy with this federal program. As to date, there is no expiry date specified for this particular program.
Federal Residential Renewal Energy Tax Credit
The homeowner gets a 30 percent tax credit on a personal income based on the total amount spent for making the home energy efficient. Such changes include installation of solar water heating systems, use of systems powered by fuel cells, wind, renewable fuels and solar electric technologies, and geothermal heat pumps. There are no upper limits specified for this program, which will be implemented until the end of 2016.
Federal Energy-Efficient Mortgages
One can use this mortgage for making the existing home energy-efficient through opting for any or a combination of the aforementioned changes. In addition, they can also use this for additional financing to buy a new energy-efficient home. There is no expiration date as of yet for this program.
Mortgages for Energy-Efficient Changes
Several other programs are designed to provide homeowners with mortgages that would enable them to make their home more efficient.
  • Both the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) can offer either 5 percent of a foreclosed home's appraised value or $4,000 - whichever is greater - to provide a with the funds for installing changes in a home.
  • Veterans Administration - Generally speaking, veterans can receive up to $3,000 to fund for the changes they have made. This amount can be doubled, however, depending on the HER results they achieve in terms of future savings. The Vet's are required to provide documented proof of all expenditures.
State Rebates
All states have different programs designed to provide financial assistance to homeowners who wish to make their homes more energy-efficient. If in need of additional funds beyond what they can get from federal programs, then it is best to contact local housing authorities in an area. Up to how much one can borrow and what they can use it for will vary from state-to-state.
Some key points to remember about state programs are listed below.
  • Most programs are performance-based.
  • Programs are only likely to exist until funds allocated to them run out.
  • Many of these programs provide funding for purchasing homes that have energy ratings equal to 5 stars or above.
Local Rebates
In many cases, a town or city can have a mortgage program that one may also make use for making a foreclosed home more energy-efficient. Again, the only way to know about this is to ask for more information from the proper local authorities.

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