Options For Financing A Green Restoration

This is actually the inviting entry way to our 4,300 square feet of potential. Someday it will be breathtaking but now it just causes me to hyperventilate, not quite the same thing.

You have found your dream house. Maybe it is an old farmhouse on a few acres of rolling meadows. Maybe it is a stately Victorian in an old area of town that is being renewed by forward thinking people such as your self. Either way, now that you have it what do you do with it?

Keep a creative open mind. We once were able to carpet the entire master bedroom of our former house with top of the line carpet that we found in a dumpster. It had been put down in an office and when the offices closed a few months later the building owner cleared the space. Because we had open minds our bedroom floor was luxuriously arrayed in thick, expensive carpeting, better than anything we could have hoped to buy. Oddly enough, on your priority list for building materials the trash may be your best shopping center. Learn the days of the bulk trash pickups in your area. These are the days that people throw away large items; carpet, building materials, appliances, and old furniture.

Is there an old home on a commercial property that is for sale? An abandoned house nearby? Contact the owners and ask if you can tear down the house for the materials. You will be saving the property owner money, recycling in a big way and gaining needed items for your project. You might even be able to make a little money on Ebay, Craigslist, or the local architectural salvage place by selling the stuff that you don't need. Be sure to research so that you are aware of potential hazards like lead and asbestos, check with the city for permits you may need, and take some time to familiarize yourself with vintage building techniques and materials. There is nothing worse than throwing away some "old, marked up" wood and then finding that you got rid of birds eye maple! Claw foot tubs, pedestal sinks, fireplace mantles, and original doors are all things you could easily take and use in your project house. There are other things that you might overlook though, like door knobs and plates, light fixtures, trim, cabinet knobs, and the things you will ultimately find in the tear down; newspapers, magazines, letters, and pictures.

Craigslist and Ebay are excellent sources for items that you can't find for free. People update their homes all the time and you can be the recipient of their trash. Congratulations! I got a fabulous light fixture on ebay a few years ago. It came out of a home that was built about the same time as mine, 1910. It had been completely restored and I did pay a little more for it that I should have but it really makes my front hall incredible. Not that long ago that light fixture would have been headed for the local dump. You may need to keep checking for awhile and be patient until what you need shows up, but it almost always will.

I always suggest that you try to do it by cash. Credit-itis is a major disease in the United States today and it will ultimately hurt you. Much better to learn to put off what you can and use the money you have in hand. However there are just some times when you need large amounts of cash and that is when you need to spend time thinking it through.

First, try your local historic, restoration, or preservation society. They go under different names so try all three. Usually the library is a good place to get information on contacting them. The historic society often has funds to donate (or loan with low interest) to people working on significant vintage homes. These societies operate on local, county, state, and national levels so be sure that you have looked in to all the possibilities. They are also often an excellent resource for finding good contractors with experience working on older homes.

HUD also has programs for restoring old homes. Most of the time this will require that the home be part of an urban renewal project area, however it is always good to check. The HUD 203k program allows you to buy a home that a bank or mortgage company wouldn't touch.

You see, mortgage companies want a home to provide adequate loan security. And, sadly, most people aren't interested in refurbishing old, run down properties. The mortgage company might o.k. a high interest rate construction loan until the property can meet it's requirements but that can be expensive over the time it could take you to refurbish your personal castle. However, with the HUD 203k, your loan could be as little as 1 percent over HUDs current interest rate, significantly lower than a construction loan.

If you have relatives that have a large equity and would consider getting a HELOC (home equity loan) at a low interest rate and allowing you to pay them back it might be something you want to look into.

Some old homes have carriage houses, garage apartments and guest houses on the property. If these are in good shape consider renting them out to help offset the money going to payments that you need to make. Maybe there is enough land with the house that if you buy it you could sell off some of it to pay part of the mortgage and then refinance? Again, keep an open and creative mind to the possibilities. Remember too, that there are tax breaks available to not only home owners in general but home restorers specifically. There are tax breaks for various earth saving devices that you add; solar power, wind turbine, rain water collection systems...and if you are a disabled vet there are many counties that will waive your property tax. Unfortunately Dallas County, Texas is NOT one of them.

The old saying, where there is a will there is a way, is a truth that our grandparents and parents often changed their lives with. By thinking things through, seeking creative solutions, and doing research you will be able to finance your restoration and begin the life you are dreaming of now.