I'm remodeling my house and I feel like I am missing out on incentives. What are the hot new incentives out there?

Asked by Frank Lee
San Diego, CA

I will be remodeling my two bathrooms, and I am also looking into re-insulating my attic.


Rick Williams

Answered by Rick Williams

Aptos, CA


April 5, 2010

Great to hear that you are remodeling your house. There are green incentives out there, many specific to your particular county and utility district.

  • If you are focusing on your bathrooms, take a look at your water company's rebates for installing a low flow toilet or low flow showerhead.
  • The Federal energy efficiency tax credits up to $1,500 or 30% of the material cost, not including any installation costs, certainly provide a good incentive in reducing your federal income tax while decreasing your energy costs.
  • These Federal tax credits will cover the cost of the insulation, windows, doors and HVAC. Go to for details.

To finance this project and secure low monthly payments, the FHA 203K and Energy Efficiency Mortgage would work well to provide you with the funds for this remodel and provide low rates with a 30-year amortization.

  • As long as you have 2.5% equity in your home, you could secure up to $42,000 in remodeling funds and refinance your current mortgage(s) into one 30-year loan at current rates in the low 5.0%.
  • Your remodel could well serve to not only improve your home, but decrease both the mortgage costs and the energy costs while decreasing your income tax bill.

Those are some great incentives.

Tagged In: attic insulation, incentives, low flow toilet

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