What do you usually think of when you hear the words "ECO" and "Green"? For many, the first things that would come to mind are saving the trees, light bulbs, plastics, and overall, our environment to include electric cars and waste. Just in the last year or so, many more have been looking into ECO friendly buildings and homes. I know that we have many faults from the past, that we really need to pay attention to this now. I believe that it starts with the land around us and global warning. We must understand this first, as we venture out into own cities, towns, and local neighborhoods with ECO friendly homes. I wrote about the land around us 2 years ago and this has become more prevalent now than ever before. Please read :
What's happening to the land around us.... (the basics)
So how can we push this forward into 2009 and using concepts such as those by Brad Pitt and others?
Hey Clavin.... that would be Cliff Claven from Cheers, the guy that knew everything. But I wonder if he knew this.... Did you know that the nation's first "green" residential high-rise was built in lower Manhattan, called the Solaire. In the Battery Park City development, located in Manhattan, the city instituted mandatory guidelines for all new residential buildings. The Solaire was built and then completed in 2003.
Which brings me to my next point. Part of this contest is to establish Brad Pitt's fundamentals and dreams of what he is trying to do in New Orleans, specifically in the 9th Ward. If any of you never saw what Hurricane Katrina did in its devastation, then you must research this. But here is Brad's mission statement regarding the 9th Ward :
"Make It Right is clear: it is to be a catalyst for redevelopment of the Lower 9th Ward, by building a neighborhood comprised of safe and healthy homes that are inspired by Cradle to Cradle thinking, with an emphasis on a high quality of design, while preserving the spirit of the community's culture."
Here is the challenge. I applaud Mr. Pitt's efforts, sweat, and courage to get something started, that the government has pledge to help in its efforts. Let's take it one step further. HUD, U.S. Department Housing and Urban Development, with the help of President Bush, pledge millions of dollars in grants and in mortgages because of Katrina. But here lies the problem. You... us... me... myself... If the general public is not made aware of the availability of the current programs designed to correct the issue, then what leverage does the industry have in making the public aware that there is a very viable solution to the crisis we are facing. ----- At the President's request, he got Congress to approve over 16 billion in recovery monies, in which the funds were provided through HUD's Community Development Block Grants.
Hey, I am all for the government, for grants, charities, etc, etc. But again, let's take this even a step further. How about utilizing the tools that we have right now, at our fingertips. Let's not wait for government intervention, or ideas that Brad Pitt has. Not knocking his "Make it right is helping rebuild the lower 9th ward" efforts. He has some great sponsors helping in his efforts and dreams. read on....
Here is my take on the whole situation about the ECO friendly environment and how we can educate ourselves and at the same time, make our living space not even more environmentally friendly, but more pleasant to live in.
I feel that we don't have to build new, but rebuild. In the last 2 years or so, we have had record foreclosures. We have had homes deteriorate because we as American Workers can't save what we want. We first need to worry about our families, that it's all about their health & wealth fare. So moving forward, how can we do this.
2 things that I would consider our arsenal of tools, while waiting for the gov't and others as I mentioned above.
- The FHA 203-k loan. There are 2 versions of this.... the 203-k loan and the 203-k streamline loan. I am not going to bore you with details, you can read about it through the links. This type of mortgage allows you to incorporate all kinds of different rehab costs. Even if you want to add solar panels, new heating, new windows, etc,etc.
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- A. 203- k
- B. 203-k streamline
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- The EEM loans by HUD... the Energy Efficient Mortgages.
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- A type of mortgage that allows for additional costs from $4,000 to $8,000 to be financed into the new mortgage, no matter if it's a purchase or a refinance. This type of loan allows for specific improvements to cover, electric, heat, gas, and anything to do with improving your home as an ECO friendly home.
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Summary : Overall, I am all about government, yet I don't want this to be political or that we jump up and down when a celebrity gets involved.
So, Brad Pitt, this is how we can make it more affordable now and not worry about help from outside groups. Let's get back to the basics and fundamentals. "EDUCATION"... When it comes to mortgages, there are still some programs that are very worthy. And not to sound negative, but I would bet that 50% of all loan officers out there don't have a clue about either program. This is where I think the problem starts and where we need to make sure that we are dealing with a true mortgage professional. Someone that has all of the options, yet that they can explain each one with ease. The same people that care as much as Brad Pitt, but have more than followers and their stardom. These programs mentioned have been at our finger tips for decades and we need to use them to the best of our ability while we wait for funding for such disasters mentioned above. But wait... why do we have to wait for such disasters, when the same programs mentioned above... such as the 203-K loan and the Energy Efficient Mortgage programs are readily accessible now, to help those fix up their homes that they live in. Or just for the fact that when buying a home, you can use these same programs. Please read the links supplied to give you more information on how these programs work. Thanks
- FHA Loans - USDA Loans - Conventional Loans - VA Loans - Mortgages - - ENERGY EFFICIENT Mortgages - Experience & Knowledge at its BEST !!!
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For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2009 by Jeff Belonger
Jeff,
I posted my ECO blog last week'
History Revisited / Creative Real Estate
Bill
Jeff, how great is that! I didn't know buyers could roll up to 5k into their loan for eco-improvements... WOW. That's an amazing loan product!
I had an inquiry the other day from a gentleman that wants to build a new home using eco-friendly materials. I did a search for him and for the life of me cannot find an eco-friendly builder in my local area.
Goodness. You would think someone would be jumping for new business! I'm going to point him your way Jeff so that he can learn about the mortgage products you described to help him when he's ready. Thanks!
Jeff, thanks for this. Kris any builder can build that way. I know one in Oakland County so call me.
Hi Jeff - You make great points, especially when you say,
"I feel that we don't have to build new, but rebuild."
There are so many existing homes that were built before energy codes with materials and building standards not up to today's codes. There have also been many developing technologies over the past 20 years that give homeowners more healthy, eco-friendly choices. Recycling what we have makes sense!
WILLIAM.... I'll take a look at it later today. But curious, any feedback on mine? thanks
SARA..... . yes it is and you hardly ever hear anybody write about it or talk about it. I have written several posts on this and in my 2009 business plan, to write about it once a month. Energy Efficient Mortgages But I made a mistake because I was typing late last night, after a busy day. You can actually include up to $8,000 worth of Energy Related materials into the mortgage. In any case, thanks for the excitement and for stopping by.
KRIS.... . first off, I would think more specialized builders would be more rare in this economy. This hit builders especially hard and I am more sure in Michigan. On the other side of the fence, don't many of us know that people don't like large change at times. Or just for the fact that they would have to learn new ways of building... learn new methods, and at the same time, have to be on top of their game. Yes, we have to adapt and conquer, but that is easier said than done with so many... just my opinion. But you are right, you would think more builders would be popping out with this kind of focus when building. thanks
MISSY..... . my pleasure... and I hope you can help Kris out so she can help her client. The more that we spread this kind of stuff around, the more efficient that we will become as a country.
MARY.... . thank you.... I think this contest was great, for awareness... JaneAnne over did herself on this one. But I saw the focus on new building when as mentioned, there are so many existing homes that could use face lifts. Let's start there. Sure, Brad Pitt's project was to rebuild because of a disaster, but why wait for a disaster to strike. thanks
Reuse rather than make new is a very importent part of the "green" movement. Nice job pointing out that there are mortgage products that can help with this effort.
Jeff - You always share a wealth of knowledge and take time to educate the customer. Great details. I've personally never done an Energy Efficient Mortgage and will have to learn about that product further. Thanks for getting that ball rolling for me.
BETH.... . thanks and my pleasure... I would be interested in any other products out there also.. but this is all that I know of. thanks
JOHN.... . thank you very much for those kind words... I have done a few and they aren't that hard. HUD has a specific breakdown on their page. thanks
Hi Jeff - Very interesting to take one a subject and expand it for other purposes. Nice Job!
Now this post has a whole lot to chew on! One point you made is great - a neighbor of mine had her house severely damaged in a fire and she did a great job of a green rebuild of this 1914 oldie. Wish they could renovated people that well!
Jeff~
FANTABULOUS post (of course) and yet another reason why I subscribe to your BLOG.
Good luck on your entry in the Eco-All-Stars January Challenge...and thank so much for the time and energy you put into this amazing post...as Patricia says..."...this post has a whole lot to chew on!..."
Jeff, great information and much needed. You are so right that rebuilding, when feasible is much more green then starting from scratch.
I would like to suggest to Kris to check out the website of Peter Lytle, who did a LEED for home rebuild project in Minnesota that is the highest LEED rating home in the world. His website is www.livegreenlivesmart.com. Peter's Institute is dedicated to education and research in green building and he is amazingly helpful. I am one of the trainers for Peter's certification program for real estate and design profesionals. Also, a resource that could help your client is the GreenBuilt program in Michigan, here is their website: http://www.greenbuiltmichigan.org/FindaProfessional/tabid/66/Default.aspx
I had no idea there were mortgages avalable that enabled people to "go green", or whatever the buyer wants to do to improve their home. This is a great idea. Are these available for people who want to refinance, or are they only for purchases?
I commented on Rodney's post about 203K-Streamline loan asking him if the loan is still available since his post is back in 11/08 (I am not a mortgage broker, so a bit ignorant on this). Rodney said it is and it acts like FHA but with prevision allowing repairs after rather than closing. Not many people offer this due to the amount of paper work. Good deal to know!
Jeff- It is great that you educate us about green building financing from the prespective of the lender. We may not always have socially responsible people with the resources and will to step up to help those less fortunate and current economic circumstances show we can't always rely on government even when it has the will.
203K-streamline. This may be the little nugget that some buyers in my area need.
I had taken a recent FHA class but I didn't realize the big hidden values of the loan program.
Congrats on a great post Jeff - Green is spreading all over Active Rain.
Jeff, nice job bringing in the mortgage aspect. Not enough mortgage brokers are getting involved in the intricacies of green homes! What about those appraisers???
Jeff,
You are such a great contributor. I have no idea how you have time to write out such well thought out posts. In juggling closings, listing appointments, my family, etc. I still plan on writing that 1st time homebuyers post! It's coming, I just never thought I'd be so busy in January/Feb.
Jeff,
At the risk of sounding like a broker record....great post! Your thoughts or suggestion are very worthy of consideration.
Your post reminded me of my tour of duty in Germany back in the early 80's and the traditions and culture of the German people. Some of this may have changed since I last visited Germany in 1990. but most likely not.
The Germans are extremely st rick when it comes to new construction and urban/suburban sprawl. You will not find homes and businesses scattered across their countryside, in fact, seldom will you even encounter a fence. The Germans long ago realized the impact of allowing construction or developments across their country. They build up and not out. There is a great emphasis on maintenance and improvement of existing dwelling and structures.
There is tremendous "pride of ownership" and many of their homes stay in the family for generations. Germany was very liberal with tax advantages for people to continually improve their homes. Consequently many German home were often in a continuous state of upgrade to one extent or another. In my travels throughout Germany I can unequivocally state that not once did I ever encounter an area that was substandard or a slum area. They simply were non-existant.
So I think you can see why I believe there is so much merit to what you suggest!