7 affordable sustainable new home builds, USDA Loans, FHA homeowners guide

7 Affordable Options for Sustainable New Home Builds (USDA Loans, FHA & More)

August 22, 2024

A new home often feels out of reach, but with new construction you actually have the freedom to make choices that can greatly impact the affordability of your home as well as its environmental impact.

Here are some of the ways you can pay for a new home build and ideas for making it as affordable and sustainable as possible.

Options to Pay for a New Home

When you’re in the market to build a new home, you have a few options for financing. Here are some of the main ways you can pay for a new home build:

USDA Construction Loans: While USDA loans are usually thought about for buying an existing home, there are USDA construction loans that allow you to build a new home instead. These loans offer the same benefits as traditional USDA loans, helping make a new build more accessible for rural homeowners.

FHA Loans: Just like USDA loans, FHA loans can also be used to build a new home if it meets all the requirements of a home you would purchase with an FHA loan. This option allows new homes to be more accessible to more people.
Construction to Permanent Loans: Typical loans for home construction start out as short-term, flexible loans and transfer into a long-term mortgage when the home is fully constructed. These loans have an upper limit, but they allow you to have some flexibility if construction costs vary from the original estimates.

Other financing options may exist in your local area. Check for any additional options you may be able to access in your state or county.

7 Affordable Options for Sustainable Homes

Pre-fabricated Homes

New home builds can be streamlined by using pre-fabricated home designs and materials. The best part of pre-fab homes is that you have the opportunity to make a home with highly sustainable materials for a reasonable price.

With pre-fabricated homes, you can reduce waste by using only what you need in your home while getting a predictable result. These homes are also optimized to be efficient, giving you a few options to customize the home where you need it without having to design something from scratch.

Tiny Homes

Smaller homes are not only more economical to build, but they also tend to be better for the environment. A well-designed tiny home is energy-efficient, uses fewer materials, and can be made from unique material types that don’t work as well on a large scale.

Even if you can’t scale down to a true tiny home of 400 sq. ft. or less, downsizing to a smaller home can have some of the same benefits. Build a house that’s appropriately sized for your needs and uses space efficiently.

Passive Design

Homes should be designed for their surroundings. Passive design aims to make your home more efficient for the environment it’s in.

A good example of passive design is building windows facing away from the sun or including large awnings and shades in hot, sunny climates. Choosing appropriate sustainable architecture, building with the right materials, and planning green spaces can all contribute to passive design.

The purpose of passive design is to reduce the energy used to maintain your home.

By designing your home thoughtfully for the area you’re building in, you’ll reduce your energy consumption, reduce the maintenance needed in the house, and keep your house lasting longer.

Recycled Materials

Using recycled materials in your new home build helps reduce the environmental impact by reducing the amount of new or pre-made materials needed for the build. Recycled materials are most useful in finishing.

Recycled wood can be used for flooring while old furniture can be refinished and used for custom features in bathrooms or kitchens. Not only will you end up with something unique, you’ll also save on the costs and labor of new materials. While there is still a cost to using recycled materials, you can find good deals that greatly reduce your overall material costs and keep useful materials out of landfills.

Energy Efficient Focus

While you’re building a new home, it can be a great investment to make energy-efficient choices from the start. Making your home as energy-efficient as possible will reduce your maintenance costs and save you money in the long run. It will also make your home much more environmentally friendly, consuming far less energy.

Look into insulation measures like triple pane windows and sealed doors, as well as efficient geothermal temperature control systems. The choices you make while you’re building will have a huge impact that pays off over time.

If you’re building a smaller home, you may be able to afford to make choices that are more initially expensive with a long-term payoff, such as installing solar panels or rainwater collection systems.

Traditional Housing Styles

Although modern housing styles can be efficiently designed, traditional housing types might be worth looking into for a uniquely sustainable home design. Adobe homes, rammed earth houses, log cabins, raw stone cottages, green roof homes, and other traditional houses can all offer unique benefits to suit your climate.

If there’s a traditional style of home designed for your area, look into the benefits it can offer and consider if it’s a good choice for you. When traditional style homes are built using modern materials and technology, you can end up with a truly spectacular home that’s perfectly optimized for your area.

Shipping Container Homes

Although shipping container homes have fallen out of mainstream popularity, they’re still a great option for some new home builds. When thoughtfully designed, you can make a highly efficient home using old shipping containers instead of new materials. You’ll save money and get a unique, sustainable home that’s strong enough to last for decades.

7 Affordable sustainable new home builds options Conclusion

Although new home builds tend to be more expensive than buying an existing home, you have some choices that make it more affordable and sustainable. Consider your options carefully to build a home that suits you well without sacrificing eco-friendly principles.

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