It will be worth your time to investigate the various types of loans available for making a home more energy-efficient. These loans offer somewhat wider latitude on debt-to-income ratio and in interest rates. Some include no closing costs. In addition to the special financing for the cost of your addition or remodel, you will be probably be eligible for certain tax credits, you may be eligible for a rebate from your local utility company, and you will cut your energy bills by 10-50%. This savings will add up very quickly over a few years. In addition, making your home energy-efficient will make it more comfortable. You can also use energy-efficiency as a selling point when you sell your home. Ask your lender about energy-efficient loan programs or check on your own about an FHA Energy-Efficient Mortgage, FHA Section 203(k) Rehabilitation Mortgage Insurance, FHA Title I Property Improvement Loan Insurance, an Energy Star Mortgage, or a Fannie Mae Energy-Efficient Mortgage or Residential Energy Efficiency Improvement Loan.


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Other ways to Pay for Your Remodel
Take all allowable tax credits for energy efficiency
Research rebates from utility companies for installation of energy-efficient lights and appliances