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Use
a FHA Refinance to make home improvements |
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If you need extra cash to make improvements to your home, a FHA refinance may be an excellent option. The FHA allows you to take cash out from your home to payoff debt or make home improvements. One option to improve your home is to take advantage of the FHA Energy Efficent repairs program.
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| FHA Energy-Efficent Repairs Program |
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Just like the Veterans Administration has loans for veterans who want to make
entenergy-efficient improvements to their homes to be more energy efficient, the
Federal Housing Authority also has mortgage programs for people to make
improvements to their homes that will lower their monthly utility expenses. you
can save a lot of money over time by financing the cost of energy-efficient home
improvements with your mortgage, and you can get started on the necessary
improvements right away.
However, before you apply for any mortgage loan it is important to know and
understand the key features and requirements of the program. Some of the
important issues to understand regarding FHA energy-efficient mortgages are: |
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| Benefits of an Energy-Efficent Refinance: |
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You can finance the cost of energy-efficient home improvements with your
mortgage, even if you are building a new home, purchasing a pre-existing home,
or refinancing your current mortgage. |
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The money that you will save on utility bills should outweigh the cost of
refinancing. For instance, if you finance energy-efficient home improvements
with your mortgage at an additional cost of $200 a month, but you are able to
save $300 a month on utility bills, you have saved yourself $100 a month. |
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You must be able to obtain a FHA mortgage loan. FHA energy-efficient
mortgages are a way to make immediate, necessary home improvements, but you
must qualify for and fulfill the requirements of the loan to obtain a FHA
mortgage. |
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If you are able to make the required mortgage payments and if you meet the
FHA financial requirements, you can qualify for an energy-efficient mortgage.
You can also finance up to 97% of the market value of your home to include the
energy-efficient home improvements, as well as the inspections and some of the
costs involved with obtaining a new mortgage or refinancing with your monthly
mortgage payment. |
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The total amount you can borrow for energy-efficient home improvements is
5% of the value of your home or $4,000, whichever is higher. The maximum
amount that you can borrow is $8,000. For example, if your home is worth
$200,000, 5% of your home's value would be $10,000, but the FHA would not
allow you to borrow more than $8,000. |
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You may make energy-efficient home improvements if you own your home, or
if you are building or purchasing a single-family home, duplex or condominium. |
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The FHA has helped many homeowners to make energy-efficient home improvements
that have saved them a lot of money on their monthly utility bills. For more
information on FHA energy-efficient mortgages visit the FHA Energy Site.
Get information about FHA Credit
Issues. |
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