I’m sorry to say that there are some builders in the market place who attempt to deal with less than acceptable practices. I recently visited a home owner in central MS who has hired one such contractor. See how out of level this one week old room was. She simply let go of the wheel chair:
She also had what turned into a virtual laundry list of “other” issues that included:
No attic insulation
Poorly installed and improperly installed A/C system
Torn finished floor covering
Loose plumbing fixtures.
and more…
The flooring video you see above was the result of no footing concrete under the floor supports. The columns that held the home were sitting directly onto the ground. No Concrete. No Steel. No Support.
As the single largest housing expense after a mortgage payment, your utility costs can have a direct impact on how large a mortgage you can afford. You can save money on the cost of utilities by purchasing new energy-efficient heating and cooling systems or by making home improvements, such as weatherizing and insulating older homes and these investments can end up saving you money through lower utility bills.
As a new home buyer or current homeowner, you may be able to use FHA’s Energy Efficient Mortgage (EEM) to finance the cost of these improvements. FHA which is part of HUD offers the Energy Efficient Mortgage Program to allow home buyers to finance the purchase of a home—or refinance your current mortgage—and include the cost of the energy-saving, cost-efficient improvements through a single mortgage. FHA’s EEM program recognizes the monthly utility cost savings when home buyers make energy-efficient improvements. Borrowers may use the EEM program to finance the cost of energy efficient improvements into their new mortgages, without the need to qualify for additional financing, because cost effective energy improvements result in lower utility bills making more funds available for their mortgage payments.
How the Loan Works
You can take out an EEM loan as a 15- or 30-year fixed-rate mortgage or as an Adjustable Rate Mortgage (ARM) from an FHA-approved lender. FHA requires that you make at least a 3.5 percent cash investment on the property, based on the sale price. The total amount of your mortgage is based on the value of your home plus the projected cost of energy-efficient improvements. Because your home will be more energy efficient, you will save on utility costs and, therefore, be able to devote more income to the monthly mortgage payment. Your final loan amount can exceed the maximum FHA mortgage limit by the amount of the energy-efficient improvements. To find FHA mortgage limits in your area, visit the HUD website at www.hud.gov. A Home Energy Rating System provider or energy consultant will complete a measurement of your home’s energy efficiency and provide a report listing recommended cost efficient energy improvements and an estimated cost of the energy improvements and estimated energy savings to you and your lender. You may finance the cost of the energy inspection report as part of the mortgage if the entire package, including these fees, is cost effective. The amount of the energy efficient improvements is placed in an escrow account and released after an inspection verifies that the improvements are installed and the energy savings will be achieved. You can begin making energy improvements after the loan’s closing. You are responsible for hiring contractors and getting bids for the work to be done on your home. The work must be completed within 90 days after closing.
Estimated mortgage payments are based upon principle and interest only, and do not include taxes and insurance. Value indicated here is for comparison only, and will vary from home to home. Many homes qualify for energy upgrades. This home qualified for $4,816 in upgrades. With the EEM, lenders recognize the savings the upgrades will bring. Borrowers may use these potential savings like extra cash, and add the cost of upgrades into the mortgage, paying them off easily as part of the monthly mortgage payment. Once the upgrades are installed the potential savings turn into real savings.
Eligibility
Almost anyone who has satisfactory credit, enough cash to close the loan, and sufficient steady income to make monthly mortgage payments can be approved for a FHA-insured EEM loan. There is no upper age limit and no certain income level required. The following types of properties are eligible under the EEM program, including new construction or existing one- to four-unit single-family residences:
You may finance into your mortgage the cost of the energy-efficient improvements determined to be “cost effective,” which means that the total cost of the improvements, including any maintenance costs, is less than the total present value of the energy saved over the useful life of the energy improvement. The maximum cost of improvements that you can add to the mortgage is either 5 percent of the property’s value (not to exceed $8,000) or $4,000, whichever is greater based on the value of your property. For example, if your property’s value is $75,000, the maximum cost of improvements allowed is $4,000 because this is greater than 5 percent of the property value. If your property’s value is $100,000, the maximum amount of improvements allowed is $5,000 because this is 5 percent of the property’s value, greater than $4,000 but less than $8,000. Finally, if your property’s value is $160,000, the maximum cost of improvements allowed is $8,000, which is 5 percent of the property value and the maximum allowed overall. Examples of improvements that are made under an EEM loan:
• Replacing a furnace/cooling system
• Fixing or replacing a chimney
• Insulating an attic, crawl space, and/or pipes and air ducts
• Replacing doors or windows
• Installing active and passive solar technologies
If you can demonstrate you have the skills, time and ability to complete the work yourself in a satisfactory manner, your lender may authorize you to complete the labor portion of the installation yourself.
Applying for an EEM You may apply with any participating HUD-approved lender, such as a bank, credit union, or mortgage company. You can find a searchable list of HUD-approved lenders online at www.hud.gov. For lending in the deep south see this lender: Bo Smith @ Cornerstone Lending.
What if you went to the grocery store each day or each week and at the end of the month the store sent you a bill for all the food you’d bought. No specifics details on how many gallons of milk or boxes of cereal, just a big bill and a thank you. Well, that’s how we buy electrical power. One bill, you have no idea which room or appliance used the product or if your meter has made a math error. How can you effectively manage something you don’t measure? It’s simple…you can’t.
As an energy auditor and home energy retrofit contractor we want to empower you! Power to the people…RIGHT ON!
Watch our blog in the coming weeks for an introduction to a device to help you not only take control of your power usage but the knowledge to save money and add value to your home. We’ll show you how easy it is to put those hard earned dollars back in your pocket, create a healthier home with better air quality and teach your children, friends and family how they can do the same. Watch this video for a sneak peek.
My wife and I are considering selling our current home and building a new home. Note that “considering” is the key word and we are very early into the conversation. However, I was wondering what is the value of getting a HERS evaluation on my current home to use as 1) an assessment to identify weak points in the current efficiency/energy use systems and 2) use as a selling tool for prospective buyers?
Also, what is the timeframe for conducting such a HERS assessment and the costs?
Brent
Good question and one that I wish more sellers would ask.
Time Frame: Two Visits Required
One to three hours for interview and diagnosis.
Recommendations made.
An hour of so to return and measure the results of the repairs made per recommendations.
Cost: Full energy audit with report of duck leakage, whole house air infiltration evaluation and recommendations to improve if applicable = $450.00. Often times the cost to repair/improve is less than $350.00 (handyman with average skills). Total cost…approximately $800.00 (+ -). The savings and cost to repair will vary based on the quality of construction and the age and condition of your HVAC equipment, water heater, insulation, windows and appliances.
Why consider: Statistics show that lowering home energy usage directly improves value. This notion is supported by Fannie Mae, Freddie Mac, ENERGY STAR, FHA and VA financing instruments. When you increase the value through energy savings the increase is recognized in the new loan. A potential buyer will consider cost to operate the home, but only if informed. Information and education is the key to using the homes energy consumption as a sales marketing tool.
As evidence of the savings a prudent seller should consider creating solid data prior to beginning the sales/marketing efforts. I suggest that you learn where your greatest opportunity for savings is located by diagnosing your usage. You might be surprised at how little time and effort it takes to improve your home’s efficiency and value.
Selling Points: Improved marketability, improved comfort and indoor air quality, lower energy cost lead to lower cost of ownership and less maintenance.
The latest count of homes built to the National Association of Home Builders Green Building Program for Mississippi shows green building is being promoted and supported statewide.
All the homes have been tested and certified by the National Association of Home Builders to use less energy, have cleaner air, are more comfortable and are easier to maintain than standard code built homes. Learn more about the NAHB Green Build: 601-856-6102
Red certified by our firm, Energy Rated Homes of Mississippi.
It’s that time of the year again. Barbecues and family fun outdoors. To ensure years of carefree, easy living on your deck, take time each year for an inspection and some simple preventative maintenance. The finish protecting your deck won’t last forever, so plan on cleaning and resealing your deck at least every other year.
Follow these steps:
- If your deck doesn’t have any stubborn stains, wash it thoroughly with a mild household detergent. Be sure to rinse thoroughly.
- To get rid of mildew, scrub the area with a combination of water and household bleach, or use a commercial deck-cleaning product.
- Stains are the preferred finish for decks. Ask for one specifically designed for outdoor use. Penetrating oil-based stains, which protect beneath the surface of the wood, are best.
- Use a clear or semi-transparent stain if you like wood grain to show through.
- Solid-color stains are best if you prefer the painted look.
- If your deck has already been painted, you won’t be able to stain over it. Thoroughly scrape the deck, and repaint it with an exterior latex- or alkyd-base floor paint.
- Clear finishes, such as varnish or polyurethane, should be avoided. They don’t stand up as well against moisture and sunlight.
Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children.
To protect against this risk, on April 22, 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning April 22, 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination or risk being fined up to $37,500.
Our firm, Energy Rated Homes of Mississippi, is an Environmental Protection Agency (EPA) approved “Certified Renovator” for lead based paint removal and renovation. For more information contact our offices at: 60-856-6102.
Gary, I have a question about my personal home that you might be able to answer.
The south side of my yard is considerably lower than the north. Therefore my flower beds on the south side are more “raised”. We want to lower the beds by removing dirt but it will make the actual foundation of the house visible under the brick, 6-10 inches.
Would this be something that you as an inspector would call out on an inspection for any reason?
We bought this house as a foreclosure and the repairs made prior were shoddy at best. We are trying to make sure all improvements we make will be within the scope of a good inspection.
Thanks in advance.
Adam
Concrete is porous and allows for heat exchange, both infiltration and ex-filtration. From an energy loss stand point it would expose the building envelope (the protective shell of the home that shelters you from the elements) to temperature changes, both hot and cold. The floor surface nearest the exposed slab will transfer heat. Since a south facing wall is exposed to a rather large amount sun in the summer, you’re risk will be that the slab will begin to act as a radiant heater near the area of the slab that’s heated by the sun. This will begin to effect your electric bill as your A/C will most likely make an attempt to cool it down.
From a pure visual home inspector standpoint, I doubt most inspectors will notice anything unusual about it unless you have fairly obvious cracks in the slab. Generally speaking, that’s not an area of the home most visual home inspectors will ever see. If you have siding as exterior cladding the added space will help prevent moisture intrusion. If you have brick the space will certainly expose the bottom of the brick ledge and the weep holes that either have been properly installed or (in most cases) have completely been left out. So the space may increase the opportunity for the inspector to notice “other” specific details of the bottom of the wall covering.
As a green building verifier for the NAHB Green Building Program I know the importance of indoor air quality. I am also an ENERGY STAR partner and promote the ENERGY STAR method of building energy efficient homes.
Starting April 1, 2010, Indoor airPLUS will be included in the ENERGY STAR reporting process. During each reporting period (January, April, July, and October), Providers will report ENERGY STAR and Indoor airPLUS homes to EPA on behalf of their builders and Raters through the ENERGY STAR Homes Online Submission Tool (HOST) available at http://www.energystar.gov/host
Within the report, Providers will specify the number of homes that earned the Indoor airPLUS label in addition to ENERGY STAR. Blank label stickers can be ordered through HOST for both Indoor airPLUS and ENERGY STAR once the home reports are submitted. EPA is in the process of creating an Indoor airPLUS printing tool similar to ENERGY STAR that will allow Providers to customize and print sticker labels, certificates and homebuyer letters.
If you are not currently an ENERGY STAR partner or have questions about the reporting process, please contact them at IAP@icfi.com.
Good question, let me shed some light on the issue!
Three things to look into if your bulbs keep blowing. Your bulb supplier (cheap bulbs use thin filament), check the wire connections inside your bulb holder (loose wire in the fixture), and check to see if the spring loaded connectors inside the fixture are working properly inside the bulb holder.
As a last resort you can also check the tightness of the connections in your wall switch. Unscrew your bulb and look for “pitted” marks on the end of the bulb you’re replacing.
"Gary Smith was recommended because of his decades of experience in home building and inspections. He used the most up-to-date technology to inspect my home and gave me tips on how I could make it more energy efficient. He definitely went the extra mile and that is unique to only a handful of home inspectors. I would definitely recommend him but most of all I trust him!"
Thanks Gary,
David Perez
Just wanted to thank you for doing a great job on the home inspection. Your work ethics are very professional and informative. Thanks for your dedication to a job well done. I will gladly recommend your services to home buyers in the future.
Roger and Rogina Mister
I know Gary Smith to be an upstanding individual of outstanding character. He is a multifaceted pioneer of the home inspection profession and a good friend.
You can be confident in your selection of Gary to perform your home inspection or to provide any other of his many inspection product offerings. I recommend Gary Smith without hesitation.
As a new home buyer or current homeowner, you may be able to use FHA’s Energy Efficient Mortgage (EEM) to finance the cost of these improvements. FHA which is part of HUD offers the Energy Efficient Mortgage Program to allow home buyers to finance the purchase of a home—or refinance your current mortgage—and include the cost of the energy-saving, cost-efficient improvements through a single mortgage. FHA’s EEM program recognizes the monthly utility cost savings when home buyers make energy-efficient improvements. Borrowers may use the EEM program to finance the cost of energy efficient improvements into their new mortgages, without the need to qualify for additional financing, because cost effective energy improvements result in lower utility bills making more funds available for their mortgage payments.
It’s that time of the year again. Barbecues and family fun outdoors. To ensure years of carefree, easy living on your deck, take time each year for an inspection and some simple preventative maintenance. The finish protecting your deck won’t last forever, so plan on cleaning and resealing your deck at least every other year.
I know Gary Smith to be an upstanding individual of outstanding character. He is a multifaceted pioneer of the home inspection profession and a good friend.