If you have ever watched HGTV's Hidden Potential, you have seen how an older home can be transformed.
One of the best ways to buy a ‘green' home is to buy a home that is already built. New construction creates HUGE amounts of waste that goes to the landfill.
What do you get with an older home? Usually, a larger lot that is closer to town with established landscaping. That often means trees that are large enough to provide shade in the summer which help keep your home cooler; up to 20% cooler! In Chapel Hill, Carrboro or Durham, it can mean having access to the bus system.
Yes, there can be some drawbacks; an aging roof, HVAC system, single pane windows and perhaps lack of amenities like storage or en suite master baths.
A couple of strategies can help you with the drawbacks. First, look for homes that are 10 years or older. Homeowners have already started to update or replace the water heater, roof, etc. Second, find a home that can be updated or made more energy efficient at 5% of its sale price. You can then remodel the home to your specs and taste with a construction/renovation loan. The purchase closing, renovation loan and permanent mortgage are all done at one closing.
Jennifer Foster, with Suntrust, says, "the buyer must have a 5% down payment on the total amount (purchase price plus cost estimate). I'll need plans and cost breakdown for underwriting before we go to closing. The appraisal will be a "subject to" value so I'll need to share the plans with the appraiser as well."
