How to Use the 203k to Go Green

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It seems every product has a "green" alternative. Instead of bottled water we're supposed to use reusable water bottles and fill them ourselves. Instead of regular cars we have hybrids. Ditch the paper bags and use canvas. Everywhere you turn there's a way to reduce your footprint on our environment. You can do the same thing with your home. And you can finance green upgrades with the 203k home improvement loan from FHA.

Here's a look at a few home improvements that could help you reduce your environmental footprint that could be financed with the 203k:

• Energy efficient windows
• New siding and insulation
• Buy and install an energy efficient furnace
• Geothermal furnace
• New wiring and lighting
• Better plumbing, low-flow toilets
• Energy efficient kitchen appliances
• Install solar panels
• New flooring can be environmentally friendly (like bamboo)
• New roof (and attic insulation)

The FHA 203k allows a homeowner to refinance their existing mortgage and roll the cost of home improvements directly into the mortgage. And it's all based on the after-improved value of the home. Traditional equity loans are based on current equity, before the upgrades are made.

If you're a home buyer who wants to add ecologically advanced upgrades to your next home, you can also roll the cost of the work into the new mortgage. Either scenario will cost about $6 more per month for every $1,000 you finance.

Learn more about this option to buy a house or refinance and remodel with "The FHA 203k Survival Guide." The free guide walks you through the renovation process from mortgage pre-approval to bids to draws and more. Get your copy at the button below.

(creative commons photo credit)