Practical Tips & Resources For Sustainable Homeownership
The information contained in this Guide is provided for educational and informational purposes only. While every effort has been made to ensure accuracy, policies, benefits, programs, and resources may change over time.
Readers are strongly encouraged to verify all information with official sources, including but not limited to the Department of Defense (DoD), Department of Veterans Affairs (VA), Department of Labor (DOL), Office of Personnel Management (OPM), United States Department of Housing and Urban Development (HUD) and other federal, state, or employer-specific programs before making career, financial, educational, financial, or housing decisions.
This guide does not constitute legal, financial, or career counseling advice, nor does it guarantee employment outcomes. The authors and publishers are not responsible for any errors, omissions, or outcomes resulting from the use of this guide.
By using this resource, you acknowledge that responsibility for verifying and applying information rests with the individual.
www.varep.org
Mortgage, Escrow & Taxes
Why It Matters
Your monthly mortgage payment includes principal, interest, taxes, and insurance (PITI). Understanding how escrow works ensures property taxes and insurance are paid on time, helping you avoid shortages, late fees, or foreclosure.
Key Components
Escrow Basics: Lenders/servicers collect funds monthly for taxes & insurance and must complete an annual escrow analysis.
Statements: Your monthly statement shows how much goes toward principal, interest, and escrow.
Shortages/Surpluses: Escrow may increase/decrease depending on tax or insurance changes.
Responsibility: Even with escrow, you must confirm payments were made correctly.
Action Checklist
Review monthly mortgage statements.
Save and check your annual escrow analysis.
Plan for changes in taxes or insurance premiums.
Contact your servicer immediately if payments look incorrect.
Reach out to VAREP housing counselors for mortgage or escrow questions.
Owning a home brings new costs beyond the mortgage — utilities, maintenance, HOA dues, and unexpected repairs. A strong budget and healthy credit help you sustain ownership.
Action Checklist
Key Components
Post-Purchase Budget: Add utilities, repairs, HOA/condo fees, and savings reserves.
Emergency Fund: Save monthly toward repairs and emergencies.
Credit Health: On-time payments protect your credit score and future borrowing power.
Debt Management: Pay down high-interest debt to keep housing affordable.
Update your budget with real housing expenses
Automate savings for repairs and emergencies.
Pull annual credit reports and dispute errors.
Schedule a check-in with VAREP financial counselors for budget support.
Official Resources
HUD Financial Literacy Modules
hudexchange.info
Annual Credit Reports
annualcreditreport.com
VAREP Housing & Financial Counseling
www.varep.net
Home Maintenance & Contractors
Why It Matters
Routine maintenance protects your investment and prevents costly repairs. Choosing the right contractors helps avoid scams and poor-quality work.
Key Components
Seasonal Plan: Inspect roofs, gutters, HVAC, plumbing, and safety systems.
Documentation: Save receipts, warranties, and photos of all repairs.
Contractors: Get 3 bids, check licenses/insurance, and use written contracts.
Permits: Ensure proper permits are obtained for major projects.
Action Checklist
Create a seasonal maintenance calendar.
Budget for routine upkeep and major repairs.
Hire only licensed, insured contractors.
Contact VAREP housing counselors for guidance on trusted providers.
Homeowners insurance protects your property, but you may need extra coverage (flood, earthquake, wind/hail) depending on location. A disaster plan protects your family and home.
Action Checklist
Key Components
Policy Review: Confirm dwelling coverage, deductibles, and exclusions.
Flood Insurance: Required in flood zones; recommended elsewhere.
Disaster Prep: Keep go-bags, emergency supplies, and a digital inventory.
Annual Review: Update coverage when property values or improvements change.
Review your policy annually and after major upgrades.
Consider flood insurance even if not required.
Store digital copies of policies and inventories off-site.
Connect with VAREP counselors for insurance literacy and disaster readiness planning.
Official Resources
FEMA National Flood Insurance Program
www.floodsmart.gov
HUD Housing Counseling
www.hud.gov/housingcounseling
VAREP Homeownership Counseling
www.varep.org
Energy Efficiency & Utility Costs
Why It Matters
Lowering energy bills keeps monthly housing costs manageable and builds long-term savings. HUD emphasizes energy efficiency as part of sustainable homeownership.
Key Components
Low-Cost Fixes: Weather-stripping, LED bulbs, programmable thermostats.
Upgrades: Insulation, efficient windows, ENERGY STAR appliances.
Rebates & Credits: Check federal, state, and utility programs.
Monitoring: Track monthly usage to spot unusual spikes.
Action Checklist
Schedule a home energy audit.
Prioritize upgrades that reduce costs and increase comfort.
Apply for rebates before making improvements.
Ask VAREP housing counselors about energy-efficiency programs for veterans.
Official Resources
Energy.gov Home Efficiency
energy.gov
HUD Exchange Post-Purchase Guidance
hudexchange.info
VAREP Housing Counseling
www.varep.net
Refinancing, PMI Removal & Building Equity
Why It Matters
Smart equity management helps you lower monthly costs and grow wealth. Refinancing or removing mortgage insurance at the right time can save thousands over the life of your loan.
Action Checklist
Key Components
PMI (Private Mortgage Insurance): For conventional loans, you can request cancellation once you reach 80% loan-to-value (LTV); servicers must cancel automatically at 78% LTV if you’re current.
FHA Loans: Mortgage insurance rules differ; often requires refinancing into a conventional loan to remove MIP.
Refinancing: May reduce your interest rate, change loan terms, or consolidate debt — but always weigh fees and break-even points.
Equity Growth: Extra principal payments and home improvements increase equity faster.
Ask your servicer when your PMI is eligible for cancellation.
Compare refinance offers before committing.
Use extra payments to pay down principal if possible.
Meet with a VAREP housing counselor for equity and refinancing education.
Improvements can make your home more livable and increase its value. HUD programs like the FHA 203(k) loan help finance both the purchase/refinance and rehab of a home.
Action Checklist
Key Components
FHA 203(k) Loans: Available in Standard (major repairs) and Limited (smaller projects) versions.
Other Financing Options: Home equity loans, HELOCs, or cash-out refinancing.
Documentation: Always get written estimates, contracts, and lien waivers.
Permits: Ensure proper permits and inspections for larger projects.
Prioritize repairs that protect health, safety, and property value.
If using 203(k), work only with FHA-approved lenders and consultants.
Keep copies of all receipts and permits.
Consult VAREP housing counselors for rehab financing guidance.
Official Resources
HUD 203(k) Loan Info
www.hud.gov/program_offices/housing/sfh/203k
FHA-Approved Lender List
www.hud.gov
VAREP Housing Counseling
www.varep.org
HOA/Condo Associations & Community Rules
Why It Matters
If you live in a community with a Homeowners Association (HOA) or condo board, dues and rules affect your budget and lifestyle. Non-payment of dues can result in liens and even foreclosure.
Action Checklist
Key Components
Governing Documents: CC&Rs (Covenants, Conditions & Restrictions), bylaws, and community rules.
Monthly/Annual Dues: Budget for routine fees and potential special assessments.
Voting & Meetings: Homeowners can vote on budgets, boards, and rule changes.
Dispute Resolution: Use formal processes outlined in your HOA/condo bylaws.
Read and understand your HOA/condo documents.
Set aside funds for HOA dues and special assessments.
Attend association meetings to stay informed.
Contact VAREP housing counselors if dues become a financial hardship.
Official Resources
HUD Housing Counseling
www.hud.gov/housingcounseling
State HOA Resources (varies by state)
VAREP Counseling & Advocacy
www.varep.org
Trouble Paying? Early-Action Loss Mitigation
If you fall behind on payments, early action can protect your home. HUD emphasizes contacting your servicer and a housing counselor as soon as possible to avoid foreclosure. Why It Matters
Homeowners are frequent targets of foreclosure rescue scams, predatory contractors, and fraudulent “mortgage relief” offers. Knowing how to spot scams and report them protects your home and finances.
Action Checklist
Key Components
Red Flags: Upfront fees for “guaranteed” modification, advice to stop paying your mortgage, or requests to transfer your deed.
Contractor Scams: Door-to-door repair offers after storms or disasters.
Trusted Providers: Use HUD-approved counselors and licensed contractors only.
Complaints: File issues with CFPB, state attorneys general, or HUD.
Never pay upfront fees for foreclosure help.
Verify all contractors through state licensing boards.
Report scams to CFPB or state AG’s office.
Use VAREP housing counselors for trusted, HUD-approved guidance.
