Start with the basics: proper weatherstripping, caulking, insulation and ventilation. It's also important to properly insulate heating and cooling ducts that run through unheated spaces—a lot of energy can be lost to the environment, robbing you of money and efficiency. Standards have changed over the years and if you're buying an older home, it may not be as energy efficient as it could be. These simple fixes save energy costs and improve the health of your family—and all future families who will live in the home.

A green home remodel considers the health and safety of the family above all other concerns. That's why the 203(k) mortgage program provides funds for such simple items as smoke detectors and repainting spaces with low VOC paints. Though these small items don't cost a lot by themselves, in the whole scheme of a remodel little things add up. The 203(k) mortgage program allows you funding to get these jobs done right.

Heating and cooling systems are often sized wrong for the type or square footage of the home. A previous homeowner may have installed a furnace or air conditioner that is too small to be adequate or too big, wasting energy. The HUD 203(k) program provides funds for a replacement system that is properly sized for the home and how it was built. A home energy consultant sizes the new system and recommends replacement equipment that is energy efficient.

Once these simple fixes are considered, the 203(k) program encourages homeowners to install solar panels and provides funding to accomplish this goal. Solar technology is getting less expensive but it is still a significant investment. Retrofitting solar to an existing home or adding solar to new construction is a wonderful way to create free energy. Using 203(k) mortgage funds, the latest solar energy equipment can be added to the home and the cost is included in the loan amount.

To get green home improvements approved by the FHA lender, the work must be cost-effective—in other words, the cost of doing the green remodel must be less than the total savings that will be realized by doing the improvements. A home energy consultant can easily figure both the upfront cost and the value of the energy that will be saved. As a bonus, the 203(k) program offers financing for hiring an energy consultant, allowing you to use professional services with no out-of-pocket expense.