by Scott Wilson -Certified Renovation Lending Expert – wilsonscott1@mac.com

kitchen design ideas appliances

Photo by Ricardo Diaz

For those wanting to purchase appliances as a part of a kitchen remodel or for those who just want new appliances, there’s a way to buy them and finance them into your home mortgage as a part of a renovation project. Another way to finance them into your mortgage is as an energy efficient improvement.


Here’s a secret that most people don’t know.  You don’t need to have the equity for the cost of the appliances.  If your home appraises for what’s currently owed, the FHA 203k loan allows you to borrow approximately 10% more than what it appraises for.  And, if the appliances are energy star rated and you prove they save you more money than they cost over time (there’s a process to do this), the cost of the appliances can be added to the mortgage even if their costs exceed being 10% more than the value of your home.

The benefits are:

  • For every $1000 borrowed their mortgage payment would go up approximately $5/mo. For $10K borrowed that would be a payment of $50/mo. more.
  • Interest rates are very low and the additional interest paid on the money needed to buy the appliances is tax deductible.
  • The savings generated by having new more energy efficient appliances will help offset your increase in monthly mortgage payment, maybe offset it completely?
  • The energy saved by having more efficient appliances helps preserve our environment.

If you are interested in learning more about how to purchase new appliances using a FHA 203k loan or an Energy Efficient Mortgage, call me and I’d be happy to share more with you.