Loan Program Provides Purchase and Rehab Funds in One Package

Interested in purchasing a foreclosure, short sale or other home that needs work? Then you need to know about a special loan program administered by the Federal Housing Administration.
The Section 203(k) program provides approved borrowers with the funding necessary to not only purchase a home but also to rehabilitate or repair it. Normally, when a buyer purchases a home in need of repair, he must first obtain financing for the purchase and then get additional financing for the rehab. The 203(k) program was designed to eliminate the hassle and cost of two separate loans.
The 203(k) program has become increasingly popular over the past year because so many properties—particularly those under foreclosure—are in need of repair.

Here are some details on the program:

• The home financed must be at least one year old.
• Part of the loan proceeds are used to pay the seller (or if used for a refinance, to pay off the old mortgage) and the rest are held in an escrow account and released as the repair work is completed.
• The cost of the rehab must be at least $5,000, and the total value of the property must fall within FHA mortgage limits for the area.
• One- to four-family dwellings and condominium units are included (if the condos are in approved projects). Coops are not eligible.
• The repair work can range from minor repairs (as long as they cost $5,000) to virtual reconstruction. Luxury improvements are not eligible.
• Applications must be submitted through an FHA-approved lender.
• Investors are not eligible; the property must be owner-occupied.

Rebates Help You Save Money When Upgrading Appliances

In the market for a new appliance? Then think Energy Star. Not only will you be helping the environment by purchasing an energy-efficient appliance, but you’ll be helping your budget as well, thanks to a $300 million “cash for appliances” program funded by the U.S. government and being rolled out state by state. .
The Energy Star program is a partnership between the U.S. Environmental Protection Agency and the U.S. Department of Energy. According to the Department of Energy, by using Energy Star, Americans saved enough energy in 2008 alone to avoid greenhouse gas emissions equivalent to those from 29 million cars–and also saved $19 billion on their utility bills.
The appliance rebate program differs in each state, but the basics are this: Buy an Energy Star appliance and receive a rebate of between $50 and $250. You must be replacing an existing appliance to qualify. Depending by state, the program covers boilers, air conditioners, washers, dishwashers, freezers, furnaces, heat pumps, refrigerators and water heaters.
Each state runs its own program with funding from the Department of Energy. Dates and program details vary by state. Check out www.EnergySavers.gov for details on your state’s program.
One piece of advice: Act quickly. The rebate program will continue only as long as each state has the funds to support it. Once the funds are exhausted, so is the rebate program