Being Green

Green is all the rage!  You hear it in reference to just about every marketed product.  Just what does it mean to be “green”?  According to Wikipedia:  Green, along with environmentally friendly, eco-friendly and nature friendly, are synonyms used to refer to goods and services, laws, guidelines and policies considered to inflict minimal or no harm on the environment.^[1] "

Did you know there is no single international standard for environmentally friendly goods and services?  Beware when something is labeled as such, it could mean something different than what you think it should.

So what is a green home?  According to the U.S. Green Building Council’s Green Home guide there are many factors that make up a green home.  Some items to consider are:  location, size of home, building design, building materials, energy efficiency and landscaping.  

Let’s take a look at each of these measures.  Location: the development should not be located on an environmentally sensitive site like wetlands or endangered species habitat.  The development should be compact:  at least 6 homes per acre.

Size of Home:  The smaller the home is the less resources it will use.  In the case of green, smaller is better.

Building Design and Materials:  Is the home designed to use natural light sources? Does the outside have natural shading?  Are the materials recycled or environmentally friendly?

Energy Efficiency:  This covers everything from lighting to heating and cooling and appliances.

 Landscaping:  You should choose drought resistant plants for your yard as well as place shade trees strategically to provide cover for the concrete (driveways and patios) and for the windows.

These are just a few of the factors to look at when considering if a home is “green”.   The biggest consideration, however, should be what features are important to you?   Are you more concerned with saving money monthly with energy costs? Or is it more important that that the materials are recycled and environmentally friendly? 

Are you willing to pay more for these products just to know you have a “green” product?  If you are concerned about the overall price tag of your home, make sure to compare upfront cost vs. monthly savings to make sure it makes financial sense.

Hartland Homes’ homes meet many of these “green” standards.  All of our homes meet the energy star guidelines,

our developments meet the 6 per acre standard, and our homes are smaller and efficient by design.  However, if we do not currently employ the “green” factor that is most important to you, don’t worry, we will be glad to make the adjustment.   Call us today.  We can help you determine what green features you want in your new home and how to make it a reality.    402-477-6668

Home Buyers To Be Charged More By FHA After September 7th

FHA is raising its Mortgage Insurance Premium rates after September 7th, 2010. What does that mean to you? If you are planning on buying a home and do not qualify for VA (military) or have 5 to10% to put down so you can go conventional… you will pay more. About 99% of our customers buy their home with an FHA loan. It requires only 3.5% down, it has the highest income to debt ratios and is more lenient with credit history.

What is the Mortgage Insurance Premium (MIP)? MIP is what FHA charges the buyer in order to have a loan that is less than80% loan to value. This fee should cover FHA’s losses should the buyer default. (Not sure it was enough considering all the foreclosures) FHA is increasing their fees to cover their rising costs (defaults).

How it works: FHA charges an upfront MIP and a monthly MIP. Currently, the upfront premium is 2.25% of the loan amount. For example, on a $150,000 loan, the upfront fee is $3,375. This is added right into the loan (financed) so the buyer doesn’t have to come to the table with extra money. The monthly fee is .55% of the total financed amount. On an $150,000 loan, the monthly fee would be $70.00.

The new amounts will have a lower up front MIP but a higher monthly MIP resulting in a higher house payment. See table below:

Loan Amount	$150,000 today	$150,000 after 9/7/10
Up front MIP	2.25% = $3,375	1% = $1,500
Monthly MIP	.55% = $70	.90% = $114
Principal at 5.5%	$871	$860
Total Principal and MIP	$941	$974

I have not included real estate taxes and home owners insurance as these are not determined by FHA and won’t be affected. The difference is $33 more a month that the home buyer will be paying for the same loan. If you get a case number before September 7th, over 5 years you will save $1,980.00 (using this scenario).

So what can you do about it? Nothing if you wait until September 7th to purchase your home. You must have an FHA case number assigned to the property you are buying before September 7th. So, make sure you write a contract on a home and get into the loan company before September 7th. You do not have to close by that date. Call Hartland Homes today for more information. 402-477-6668

8/12/10 UPDATE **FHA has decided to postpone this change until October 4th!

Click here for more information on FHA.

Examples of payments and premiums are for illustration purposes only and are subject to human error.