News
Saturday, January 21, 2012
Financing Options for Home Renovations
We are frequently asked about available financing for remodeling projects. For the benefit of our clients, we have prepared the following list of financing options. Be sure to consult with your local banker or mortgage broker for help identifying the best option for you.
Home Equity Loans & Lines of Credit
Both of these financing options use your home as collateral and enable you to utilize the equity you have built up in your home to finance your renovation. If you qualify, lenders will typically provide a loan or line of credit equal to a percentage of your home’s appraised value, minus the outstanding mortgage balance.
Cash-Out Refinancing
For a cash-out loan to be viable, you must have greater equity in your home than the amount owed on your mortgage. For instance, if you owe $100,000 on a home valued at $300,000, then you would have $200,000 in equity. With a cash-out refinancing, you might take a loan for the full amount of the equity and use it to pay off the original mortgage amount and use the extra $100,000 to finance a remodeling project. This can be a particularly good option when current interest rates are lower than your mortgage interest rate.
Construction Loans
Construction loans are issued specifically for the improvements you have planned. In this case, a lender will provide funds for your renovation based on an appraised value of the improvements. Typically, the lender will require that you pay interest only on the loan until the construction is completed and then the loan will be converted to a typical mortgage. It should be noted that these loans are difficult to come by these days, given the challenging economic environment.
Home Equity Conversion Mortgage (HECM)/Reverse Mortgage
The Home Equity Conversion Mortgage (HECM) is the FHA’s reverse mortgage program. A reverse mortgage enables homeowners, who are 62 years of age or older, to withdraw some of the equity in their home and convert it to cash. To be eligible, homeowners must have a low or no mortgage balance and must live in the home. This is an ideal program for a senior needing to finance an improvement project so they can remain in their home.
As a safeguard, homeowner’s are required by the FHA to receive consumer information from a HECM counselor prior to obtaining the loan. For more information visit HUDs website or call the National Council on Aging at (800) 510-0301. Learn more about the FHA’s Reverse Mortgage Program
Energy Efficient Mortgage Program (EEMP)
The FHA’s Energy Efficient Mortgage Program (EEMP) enables homeowners to refinance their mortgage to cover the cost of adding energy efficient features to their home. Homeowners who meet the income requirements for the FHA’s 203(b) loan are eligible to apply. In order for home improvements to be eligible for financing, a home energy rating report must be prepared by an energy consultant using the Home Energy Rating System (HERS). Visit HUDS website to see if your home improvement project qualifies for the Energy Efficient Mortgage Program (EEMP). Learn more about the FHA’s Reverse Mortgage Program
203(k) loan
The 203(k) loan allows homeowners to purchase or refinance a fixer-upper property and roll the cost of repairing or improving the property into the loan. To be eligible, the property must be a one to four family dwelling that has been completed for at least one year. The homeowner must be deemed credit-worthy by a FHA-approved 203(k) lender and the property must pass a feasibility analysis. Certain energy conservation and safety standards such as weather-stripping and smoke detectors are required improvements. Visit HUDs website to see if you qualify for a 203(k) loan. Learn more about 203(k) loans
Tuesday, November 22, 2011
Tips for Taking Better Photos this Holiday Season
With the holiday season right around the corner, there will be plenty of family photos capturing the moments. Our project estimator and amateur photographer, Mike Foering, offers a simple suggestion for taking better and more interesting pictures. Mike suggests composing your pictures using, “The Rule of Thirds”. It is a simple concept to implement and can result in dramatic improvements to your pictures.
In its simplest form, the rule of thirds is to imagine breaking down your photograph into thirds both vertically and horizontally (so you have 9 equal segments – think tic-tac-toe board). The rule states that if you place your subject or point of interest along one of the lines or intersection points, you will create a more balanced, visually engaging picture. Some examples include: place subject’s eyes at intersection point, locate horizon line along horizontal line, offset subject from center along a vertical line. Try using the “Rule of Thirds” in your photography this holiday season. You may just take your best pictures yet.
Tuesday, September 20, 2011
Mudrooms Help Families Master Messes
A modern mudroom can greatly improve the cleanliness and organization of your home by creating a transitional area between the outdoors and the comfort of your living space. Having a place to kick off dirty shoes, hang wet jackets and stow away backpacks and briefcases can greatly reduce the intrusion of clutter, dirt, dust and pollen.
One of the benefits of a mudroom is that it creates additional storage space–something many homes lack at side and rear entry points. By utilizing cabinets, shelves, rods and hooks you can create an area that encourages the entire family to stay organized. Mudrooms are also great places to store those easy to lose items such as keys, sunglasses and handheld electronic devices.
Mudrooms are most often located at an entry to your home that is not the front door. While building an addition is one great way to achieve the space necessary, it is not the only way. Many first floor laundry rooms can be converted to have a dual purpose. Another way to create the space for a mudroom is to renovate the garage.
Before the mud, snow and ice are being tracked all over the house, consider the modern mudroom for your next home improvement project with Custom Craft Contractors. For more information, or to schedule an appointment for a consultation, call us at: (610) 584-0665.
Sunday, July 24 2011
Top 5 Reasons to Remodel Your Bathroom
1. Family Needs
As families evolve over time the function of the bathroom does as well. A growing family may find that adding a master bathroom could shorten the morning line-up outside the bathroom door. Empty nesters may find that a stand up shower suits their needs better than a tub. In short, it makes perfect sense to remodel bathrooms to meet the changing needs of the homeowners.
2. Mold and Mildew
If mold and mildew are wreaking havoc on your bathroom, then it is likely that moisture isn’t being controlled effectively. Mold will thrive in a warm moist environment–on walls, ceilings, grout and caulk joints. In addition to creating a potential health hazard, mold damage behind the walls can go unnoticed and compromise the integrity of the structure. Renovating the bathroom utilizing proper construction techniques and innovative building materials will create a bathroom that controls moisture and stands the test of time.
3. Limited Space
If the bathroom is cramped, you can remodel to solve the problem in one of two ways. 1. Expand the footprint into an adjacent area, such as a closet; 2. Better utilize the existing space. By rethinking cabinetry and features such as the vanity, sink and shower, you can create a more open space, without enlarging the footprint of the room.
4. Water Efficiency
Options for water efficient fixtures have improved greatly. Whether it’s a water efficient toilet, or a low flow shower head that actually increases pressure, there are great ways to cut monthly water consumption without sacrificing style or comfort.
5. Just Plain Outdated
Let’s face it, that avocado green toilet is an eyesore you have been living with long enough. Let your imagination combined with Custom Craft Contractors skill and experience create your dream bathroom all while adding to your home’s value.
Tuesday, March 22, 2011
Make Your Home More Energy Efficient by Replacing Old Windows and Doors
Why is it important? Energy rates were recently increased, resulting in higher energy costs for homeowners. Drafty windows and doors are major contributors to high heating and cooling bills. By replacing windows and doors with energy efficient models, homeowners can significantly reduce their energy consumption and lower their bills.
Which windows or doors should I choose? When selecting an energy efficient window or door, beside selecting the style and features which would best suit your home, you should look for doors and windows with the proper U-Factor and SHGC ratings information. For links to manufacturers websites where you can review styles and options, visit our Go Shopping page.
What are U-Factor and SHGC Ratings? U-Factor measures how well a product prevents heat from escaping a home or building. U-Factor ratings generally fall between .20 and 1.20; the lower the U-Factor, the better a product is at keeping heat in. This is particularly important during the winter months.
SHGC (Solar Heat Gain Coefficient) measures how well products block heat from the sun. SHGC is expressed as a number between 0 and 1; the lower the SHGC, the better a product is at blocking unwanted heat gain. This is particularly important during the summer months.
In 2001, the National Fenestration Rating Council (a non-profit organization that administers the only uniform, independent rating and labeling system for the energy performance of windows, doors, skylights, and attachment products) introduced a new energy performance label which names the manufacturer, describes the product and provides ratings for one or more energy or energy related performance characteristics. Products began using this label in 2003.
NFRC also rates Visible Transmittance and Air Leakage.
Visible Transmittance (VT) measures how much light comes through a product. VT is expressed as a number between 0 and 1; the higher the VT number, the higher potential for daylighting.
Air Leakage (AL) measures how much outside air comes into a home through a product. AL rates typically range from .1 to .3; the lower the AL, the better the product is at keeping air out.
For more information on energy efficiency product ratings, visit: http://www.energystar.gov/index.cfm?c=windows_doors.pr_ind_tested
Tuesday, January 18, 2011
Bathroom Ventilation for Healthy Air
Why is it important? A properly ventilated bathroom is essential for healthy air within your home. Removing the moist air created during showering and bathing helps to avoid the growth of mold and mildew and prevents the deterioration of bathroom fixtures such as cabinetry & tile, which can lead to costly repairs.
How is it accomplished? The best method for properly ventilating a bathroom is through the use of a mechanical exhaust fan. An appropriately sized exhaust fan will take the moist air from the bathroom and discharge it to the exterior of the home.
Avoid common mistakes. Some of the common mistakes that we’ve seen throughout our years of remodeling include:
Improper Ducting – The humid interior air must be discharged to the exterior of the home. A common error for builders to make is to discharge the exhaust fan directly into an attic or a soffit. Discharging humid air into an attic or soffit will result in deterioration of the framing members and promote mildew growth elsewhere in the home. An easy way to identify if your exhaust fan is properly ducted is to:
- Look in the attic for ductwork leading from the fan to the exterior through the roof or side wall.
- From the outside, look up at your roof and side walls for exhaust caps. If you don’t see an exhaust cap somewhere, chances are the fan is improperly discharged.
Inappropriate Fan Size– The Home Ventilating Institute recommends an exhaust fan that removes 1 CFM (cubic feet of air per minute) per 1 SF (square feet) of floor space or 50 CFM for each bathroom fixture (e.g. toilet, tub, shower, etc.) for bathrooms larger than 100 SF.
Inadequate Air Intake – The door to your bathroom should have about 1 inch of open space between the bottom of the door and the floor below. This will allow for fresh air from the house to replace the discharged air.
Not Using It – For most families, once a proper exhaust fan is installed, it comes down to using it consistently. For this, we recommend two options:
- Wiring the exhaust fan directly to the switch controlling the primary lighting fixture. When the user turns on the light, the exhaust fan turns on automatically. This installation option works great for high-use powder rooms or a children’s bathroom.
- Installing a countdown timer control. When the tub or shower is in use, a control switch with preset timer settings can ensure that the exhaust fan runs for the required amount of time and then turns off to avoid being left on unnecessarily.
For more information, give us a call or visit www.hvi.org.
Saturday, September 11, 2010
Federal Tax Credits for Energy Efficiency About to Expire
Take Action: Federal tax credits for energy efficient home improvement projects expire Dec 31, 2010! Tax credits are available for a wide variety of home improvement projects including: window & door replacements, insulation, roof shingle replacement, HVAC improvements, and more. To take advantage of the credits, the improvements have to be installed prior to the December 31st deadline (the credits are extended for some less common projects until 2016). With only a few months remaining, it’s important to act fast.
How much is the tax credit? For the majority of qualifying projects, a credit of 30% of the product cost up to $1,500.00 is available.
What do I need to apply for the credit? You will need a copy of your receipt and a Manufacturer’s Certification Statement indicating that the product meets the criteria for eligibility, which typically can be found online at the manufacturer’s website.
Important Considerations:
- Product must be installed prior to December 31, 2010.
- Some products take up to 4 weeks to be delivered, such as windows and custom entry doors.
- Not all products qualify, be sure to check the product specifications to ensure eligibility for the credit.
- Credits are only available for improvements to your primary residence (i.e. rental units do not qualify).
Making a home more energy efficient is a great way to add lasting value to the home, help reduce energy bills, improve comfort, and help reduce our impact on the environment. With the winter heating season right around the corner and the federal tax credit set to expire at the end of the year, what better time than now to invest in energy efficient improvements to your home.
More information can be found at www.energystar.gov or by giving us a call!