Whether you’re planning to list your home for sale tomorrow or three years from now, it’s never too early to start making investments that will ultimately increase your home’s value.
According to the 2017 Cost vs. Value report, you will get the best return on your investment (ROI) from major renovations including: new attic insulation, basement and kitchen remodels, and adding a second story.
But even if you’re not in the position to start a major renovation—cost or time-wise—there are still plenty of smaller projects. Some you can do yourself, and they’ll help you increase your home’s value to better prepare you for the day you’re ready to sell.
Read on to learn about four small projects that you can work on (maybe this weekend) to boost your home value and make your home stand out in a crowded market.
1. Replace Your Front Door
Updating your front door is a great way to boost your curb appeal. First impressions can make or break your interactions with prospective buyers—especially since most buyers (51%) use the internet to find their home.
If you want would-be buyers to keep reading about your house and eventually schedule an in-person visit, the exterior of your home needs to look clean and inviting.
At a minimum, you’ll want to give your door a fresh coat of paint. Consider choosing a bright color that contrasts with the color of your home, but accentuates your landscaping. Upgrade the hardware on the door, too, for a simple makeover that packs a punch.
If you have more wiggle room in your budget, consider upgrading your front door to steel. Potential homebuyers will appreciate the added durability and security, and you’re likely to get a 90.7% return on your investment.
2. Upgrade Your Landscaping
Landscaping is another component of curb appeal that can really set your house apart from other listings. Prospective homebuyers tend to think (consciously or not) that if the exterior of a home looks well taken care of, the inside will be, too.
Make sure to get rid of any clutter like kids’ toys or bikes that could detract from your landscaping. You’ll also want to make minor repairs or upgrades to parts of your exterior, like painting a rusty gutter or replacing a broken fence panel.
Landscaping isn’t just about a well-manicured lawn and adding color with plants. It could include building a flagstone pathway to the backyard, installing a wrought-iron fence to increase the privacy of your front lawn, incorporating a zen water feature, or creating a peaceful place to relax (not to mention creating more living space) with the addition of a gazebo.
Quality landscaping can add up to 20% to your home’s value—a significant increase!
3. Let the Sun Shine
Maximizing natural light is a great way to make your home look larger and more inviting to prospective homebuyers. Skylights are great for brightening up dark spaces like hallways, kitchens, and bathrooms.
Keep in mind though, adding a skylight is similar to adding another window to your home in that it can increase the demand on your HVAC system. You can cut energy loss off at the pass by purchasing Energy Star no-leak skylights to keep your utility bills low. You may even be eligible for a tax credit.
If skylights are beyond your budget, check out solar tubes. Solar tubes are usually half the cost of skylights and as long as you are comfortable working on a roof, you can probably install one yourself. Even the smallest solar tube, 10-inches, is the equivalent of three 100-watt bulbs, which is enough to illuminate up to 200 square feet.
4. Increase Your Home’s Energy Efficiency
Today’s homebuyers are willing to pay a premium for a home with energy efficient features. According to Globst.com, buyers will pay up to $11,000 more for a home with well-insulated windows and Energy-star appliances because of the long-term savings they can expect to experience with their monthly utility bills.
Regardless of your budget, there are plenty of ways to make your home more energy efficient. On the lower end of the cost spectrum, you can start by installing ceiling fans, programmable thermostats, and efficient toilets and showerheads.
If you have more to invest, you could upgrade your insulation—fiberglass insulation ranks high with an ROI of 107.7%—or even install solar panels on your roof.
The best part of this investment is that you don’t have to wait until you sell your home to reap the benefits. You’ll benefit from lower utility bills (and a smaller carbon footprint) while you still live in your home.
No matter which home improvement projects you take on to increase your home value, none of them will be terribly effective if you neglect basic home maintenance.
If there are problems with your home’s exterior—like broken shutters or cracked concrete, or even the way your dryer only works if you shut the lid in a certain way, it will be a big red flag to buyers. Consider creating and sticking to a year-round maintenance plan for a trouble-free home.
As the world shifts toward a greener and more sustainable lifestyle, many people are looking to renewable energy sources to help reduce their environmental impact. One of the most popular methods is solar energy, using solar panels to harness the sun’s power. However, most people think solar panels are reserved for houses and businesses with lots of roof space. This isn’t true; the transition to solar is for everyone.
But can you use solar panels for apartments? In this Redfin guide, we have everything you need to know about using solar energy in your rental. So whether you live in a studio apartment in Tampa, FL, or a 2-bedroom apartment in Brentwood, CA, read on for everything you need to know.
Can you use solar panels in your apartment?
Yes, in most cases, you can benefit from solar power in your apartment. However, it may not be as straightforward as asking your landlord to install a solar panel on the roof or buying one yourself.
Installing traditional rooftop solar panels in an apartment building is often impossible due to space constraints, ownership issues, management, state regulations, and your building’s location. It also may be difficult to use alternative methods of using solar energy, as every state has different laws and programs. However, don’t let these hurdles deter you from investing in renewable energy.
How to use solar power in your apartment
1. Convince your landlord to go solar
Probably the easiest way to get traditional solar panels for apartments is to talk with your landlord. There is no one way to go about this, and it may not be possible depending on your building’s location. However, if you decide to talk with your landlord, here are some benefits to highlight:
Start by educating your landlord about the financial benefits. Although the upfront cost can be substantial, federal, state, and local incentives can often help offset these costs, and the savings on electricity bills over time can make it a financially sound investment.
Solar panels can increase property value and appeal to future tenants. And for residents, solar panels can reduce monthly utility costs.
Landlords can also receive income from surplus energy and gain a reputation as forward-thinking property managers.
Solar energy is one of the most sustainable and cleanest sources of energy. By converting their properties to solar, landlords can significantly reduce the carbon footprint of their buildings, contributing to environmental conservation and sustainability.
No matter what, make sure to present your case professionally and respectfully. Your landlord will be more likely to seriously consider your proposal if it’s well-reasoned and clearly communicated.
2. Invest in miniature or alternative solar
Since you likely can’t install a solar panel system on your own, another option is to use miniature or alternative solar power systems. Here are a few of the most popular options.
Portable solar panels: Portable solar panels are another viable option. They’re essentially tiny solar panels that you place in your window. You can move them around to capture maximum sunlight throughout the day and can charge devices like your smartphone or laptop directly or store energy in a portable battery for later use. Portable panels are an excellent choice for renters since they can be taken with you when you move.
Solar batteries: Solar batteries can store energy to power your devices and appliances. They may not offer a large benefit, but every effort matters.
Solar water heaters: These are a great option if your landlord allows it. They use solar energy to heat water and store it for when you need it and can replace a traditional water heater, depending on your climate.
Solar air conditioners: If you have an area in your home that receives a lot of sunlight, you can use a window-mounted or portable air conditioner to cool a room.
3. Purchase SRECs
Another option is to purchase Solar Renewable Energy Credits (SRECs). SRECs are tradable commodities anyone can earn from generating solar energy or purchasing on the open market. States usually create SRECs to help utility companies meet their renewable energy goals more quickly, but they are also available to the general public through private companies. While SRECs don’t directly reduce your carbon footprint or generate power on their own, they can incentivize solar growth in your state and show your commitment to the environment.
SRECs aren’t available in every state, and prices vary widely depending on where you live. There is no nationwide governance on solar credits, which can lead to inflated prices and limited impact. Make sure you do your research before choosing to invest.
4. Join a community solar program
Community solar, also known as shared solar or solar gardens, is an increasingly popular option that allows multiple people to benefit from a single solar array. This setup can make solar power accessible to people with limited space and access, such as renters and small businesses.
Here’s how community solar generally works:
A third-party developer, often a solar installation company or a utility, builds a solar array, often on a large rooftop or unused piece of land. This array is usually larger than a typical residential solar panel system and can generate much more power.
States have unique laws limiting the size and capacity of community solar arrays. For example, in Washington State, these arrays can generate a maximum of 1 MW, designed to generate enough power for multiple households or buildings.
Once it’s built, individuals or businesses can buy (usually a monthly subscription) a portion of the electricity the solar array produces. A 5% share is fairly typical.
Once the solar array begins producing electricity, you can start saving money because the credit from your share of the solar project offsets the cost of the electricity you consume. Utility companies determine bill credits and generally have regulating power.
Community solar can be cheaper than individual solar panels because the cost is spread between many people. There are also government programs for low-income and HUD-assisted housing renters to utilize community solar at no extra cost. However, community solar projects are often full and aren’t widely available.
Pros and cons of solar panels for apartments
Investing in and taking advantage of solar energy as a renter is beneficial, but can be complicated. Here are some pros and cons to keep in mind.
Pros
Reducing your carbon footprint: If you’re able to get your landlord to install solar panels, or you’re able to use miniature solar generators, you are reducing your carbon footprint.
Saving money: If you can convince your landlord to install solar panels for your apartment, you could save money on utility bills.
Investing in your community: Purchasing solar credits and participating in a community solar program can have a big impact on your community. By investing money into renewable energy, you are helping it grow and become more widely available.
Cons
No tax credit: You can’t claim the solar federal tax credit if you use a community solar program or don’t own the property the panels are on.
Few solar options: In many cases, it’s very difficult to utilize solar energy as a renter. Dozens of states don’t offer community solar programs or SRECs, and your building may not receive enough sunlight for a portable panel.
Limited utility savings: You won’t receive anywhere near the financial benefits that your landlord will if they install solar panels. Additionally, community solar and miniature solar solutions offer little to no utility credits compared to traditional arrays.
Final thoughts on solar panels for apartments
While you may not be able to install solar panels on the roof of your apartment building, there are other ways to take advantage of solar energy and help reduce your carbon footprint. From talking with your landlord to joining a community solar program, there are plenty of options.
No matter your method, do your research and ensure you are following all rules and regulations. And if you’re unable to use any kind of solar energy, consider talking with your local city council, state government, or otherwise to get the ball rolling. Renewable energy is essential to lowering global emissions and slowing climate change, so every effort matters.
One of the biggest challenges for small business owners and the self-employed is finding affordable health insurance. Being able to take care of your health is important, and health insurance is a big part of that ability, since it can help shield you from big health care costs. On top of that, offering health coverage to your employees can be vital in your efforts to recruit top people. By offering health insurance as a benefit, you can improve the quality of your business by attracting competent and productive workers.
For small businesses, health insurance can be one of the biggest hurdles or one of the best assets. Unfortunately, navigating the healthcare marketplace can be an overwhelming process. If you’re a small business owner, you don’t have time to spend hours and hours researching plans and companies.
Group Health Insurance
One of your best options is to look into group health insurance. Group plans use the power of numbers to help keep costs contained. If you purchase health coverage for your employees, you can get group rates, which can be lower than individual rates. It is also possible for the self-employed to take advantage of group rates. Many online aggregators allow families, individuals and the self-employed to find insurance plans as part of a group. When you are added to the group, you have access to these lower rates.
The same concept is true of group health plans for small businesses. If you want to provide this benefit to your employees, you can usually find group rates that will make it a little more affordable for you to provide benefits to your employees.
Looking Online for Health Insurance
You can look online for group health insurance. Group rates can be less expensive. When I was looking for health insurance, as someone self-employed, for my family, I used eHealthInsurance. The site also has options for business group insurance. There are plenty of other aggregate web sites that can help you find group plans for your business, or help you find health insurance as someone who is self-employed. Many insurance companies offer quotes, and you can choose to offer different options that can help your cost. Offering a high deductible plan that is compatible with a Health Savings Account can be one way to reduce your costs.
Tax Benefits for Providing Health Coverage to Employees
Small businesses can benefit from offering health plans to their employees. If you are a small business paying for at least half of your employees’ health insurance, you may be eligible for a tax break. If you are a business with 10 employees or less, who earn average wages of $25,000 annually, and phasing out as companies approach 25 employees and an average salary of $50,000 a year.
Until 2013, you can receive a tax credit of up to 35% of what your business spends on health insurance. In 2014, the maximum credit for small businesses will increase to 50% of what you pay for insurance premiums. Of course, there are tax deductions available for what you pay in insurance premiums as someone who is self-employed.
You might also want to look into the options for state tax benefits. Check your state tax code for information about what tax breaks are available, as well as the requirements for qualifying. You should also consider speaking with a trusted tax professional, who can help you find out what advantages you have when offering health coverage to your employees.
Options for Small Business Health Insurance
As an employer, there are hundreds and hundreds of decisions you have to make. Trying to navigate all of those can be overwhelming, but health insurance doesn’t have to be one of those. There are a couple different options you can choose from when you’re
Individual Health Insurance
One of the simplest options is just let each employer choose their own health insurance plan. They can pick any plan to fit their needs. As the employer, you can help pay a part of the premium of some of the other fees. In this situation, you can help pay the premiums or expenses through a health reimbursement arrangement.
Private Health Exchange
Private health exchanges have become one of the most popular options for a lot of small businesses. They offer a lot of flexibility for both employers and for employees.
Think of private exchanges as marketplaces where your employees can shop for their health insurance and additional insurance benefits. For these exchanges, the employer will go on to the exchange and choose with carries and benefits they want to offer. The employer also decides how much they want to contribute to the plans.
After the employer has created their list of products and options, then the employees can then get access to the exchange and decide which ones they want to participate in.
SHOP Marketplace
One of the byproducts of the Affordable Care Act was the ability for small businesses to buy group plans through the Small Business Health Option (SHOP). Each state is required to have SHOP as a part of their health insurance marketplace. Depending on the state, your business must have fewer than 100 or fewer than 50 to purchase a plan through SHOP.
Inside of the SHOP marketplace, there are three different types of health insurance plans you can provide for your employees:
Employee Choice – the employee can pick any of the plans offered on the exchange, as long as it meets all of the SHOP benefit requirements.
Employer Choice – the employer can select one or more specifics plays for their employees.
Hybrid Choice – the employer can pick a metallic level and then the employee can pick any of the plans inside of the level.
Every small business is different, and your employees may have different needs. There is no “one best option” which works for every business.
House Republicans blocked an effort by House Democrats to approve $2,000 stimulus payments for millions of Americans, leaving the fate of the proposed $900 billion stimulus package mired in doubt.
It likely won’t come in time to wrap it up and put it in your stocking, but Congress has officially passed a stimulus package. The $900 billion stimulus package includes a $600 payment to every qualifying adult and child. But before you start planning to spend the money, there are a few things you’ll need to know.
Use your first stimulus check to bulk up your emergency fund – earn a high APY with a Chime® Savings Account
The bill includes relief for those who fall below a certain income threshold, as well as loans for small businesses and support for vaccine distribution. Here’s what you need to know about a possible second stimulus check coming your way.
What’s Ahead:
Who qualifies for the second stimulus?
As with the first stimulus payment, not everyone will qualify to receive a payment. To receive the full amount, your adjusted income will need to have fallen below $75,000 in the 2019 tax year. If your income was $75,000 or more, that $600 will be reduced by 5% for every $100 you made above the AGI limit.
Like the previous payment, the amount phases out entirely for taxpayers who hit a certain income threshold in 2019. Single filers who made $87,000 or more, joint filers earning $174,000 or more, and heads of households earning $124,500 will not receive a stimulus payment at all.
Best of all, the relief payment includes a $600 check for qualifying dependent children. You’ll get $600 for each child under 17 that you claim as a dependent on your taxes. Dependents aged 17 and older won’t qualify for a second stimulus check.
Why do we need a second round of stimulus checks?
The effects of the coronavirus pandemic are still being felt. While unemployment has dropped to 6.7%, it’s been a rough year for the U.S. economy. And there is still growing concern about the economic effects of COVID-19. Shutdowns have begun again as numbers increase, and the Fed has predicted a subdued economy through 2021. Efforts like stimulus payments can help keep businesses open when consumers might otherwise stop spending.
The second round of stimulus checks will inject more money into your pocket, and ultimately the economy (at least that is the hope). In doing this, it could spark another burst of economic growth, combined with other stimulus package dollars being infused, as well as what the Fed is doing to help economic growth (most recently they began buying corporate bonds).
What if my income dropped in 2020??
The stimulus payments are based on your 2019 taxes. But for many, the pandemic has caused that income to drop dramatically in 2020. If you earned $87,000 or more ($174,000 as a joint filer) in 2019, you won’t receive a second check right now, even if your 2020 income was significantly less. But that doesn’t mean you won’t receive one at all.
If your circumstances have changed, though, you’ll be able to claim the COVID relief payments as a credit on your 2020 taxes. Fortunately, this setup doesn’t work in reverse. If your income increased in 2020 and would put you over that threshold, you’ll still receive a second check based on your 2019 taxes. You don’t have to return either payment.
How soon will I receive my stimulus payment?
Your next question is probably, “When will I see the money?” That’s where the good news comes in. As soon as the President signs the bill, payments can begin being issued. According to Treasury Secretary Steven Mnuchin, “People are going to see this money at the beginning of next week.”
As with the previous stimulus check, though, your payment turnaround will depend on the payment information the IRS has for you. For the fastest payment, you’ll need to have direct deposit set up. If the IRS doesn’t have your banking information, your payment likely won’t come until after the first of the year. Even then, though, Mnuchin doesn’t expect paper checks or prepaid cards to take as long as they did with the first round.
Will I still get a check if I didn’t file a 2019 tax return?
As with the first round of stimulus payments, the second round will go to both filers and non-filers. As with the first stimulus payment, those who receive Social Security will be automatically issued a stimulus payment. Things get a little more complicated for those who don’t pay taxes.
One thing that’s changed with the second payment is that the IRS won’t consult your 2018 tax return if you didn’t file for 2019. However, the bill has expanded the sources the government can use to issue your payment. Instead of being limited to the Social Security Administration and your tax records, the IRS can now pull information from the Social Security Administration, Railroad Retirement Board, or Department of Veterans Affairs.
Is it taxable?
As with the first stimulus payment, the second one will not be taxable. It’s a tax credit, paid in advance, and it has no impact whatsoever on your tax refund. You’ll include it on your tax return, but it won’t be counted as part of your yearly income. You’ll also get the full amount of any refund you’re due next year regardless of whether you received a stimulus payment or not.
Will part or all of my payment be used to settle debts?
This is where the second payout differs from the first. This new bill specifically states that the funds can’t be garnished by creditors or debt collectors. As before, your payment can’t be held to pay government debts, including past-due taxes.
But what if you owe back child support? Unlike the first round, the second stimulus check can’t be held to pay past-due child support. The first stimulus payment didn’t have that protection.
What if my spouse doesn’t have a Social Security number?
The first payment went only to those who had a Social Security number. This affected spouses who filed jointly with those people. With this second payment, if you’re married and have a Social Security number, you’ll receive a payment even if your spouse doesn’t have one. You’ll also qualify for your under-17 dependent child to get a payment, even if only one spouse has a Social Security number.
This change doesn’t just apply to the second payment, though. If you’re married and one of you has a Social Security number, that person will be able to get the amount of the first credit retroactively. Simply apply for $1,200, plus $500 per qualifying child, as a recovery rebate when you file your 2020 taxes.
What if I’m unemployed? Does the stimulus package include funding for expanded unemployment insurance?
If you’re unemployed, the package includes a little extra relief for you. You may qualify for $300 extra every week in extra unemployment. These benefits will be for 11 weeks, running from December 26th to March 14th. The Pandemic Unemployment Assistance program for freelancers and any state-specific benefits are also extended under the bill.
Another item in the bill that’s bringing sighs of relief is the expansion of the eviction moratorium. The original protections were set to expire on December 31st, which could have left millions at risk for homelessness. Unlike the unemployment extension, though, the eviction moratorium only lasts through the end of January.
Does the bill include protections for small business owners?
Small businesses have been hit pretty hard by COVID-19, and this bill seeks to help a little. The new bill includes $284 billion for small business loans under the Paycheck Protection Program, which expired in August. The bill expands that program with some changes.
One of the biggest changes is that this new bill targets smaller businesses. To qualify, a small business must have fewer than 300 employees. A business must also have seen at least a 25% reduction in revenues during at least one quarter in 2020.
What else is included in the bill?
In addition to extending the moratorium on evictions, the new bill also includes $25 billion for tenants who are having a tough time paying rent. Those receiving benefits under the Supplemental Nutrition Assistance Program (SNAP) will see benefits expanded by 15% for four months.
The bill also includes $69 billion in funding to get the vaccine to the public. This funding will be provided to state, tribal, and local governments to help cover the cost of distributing and administering the vaccine.
Summary
Although the bill is available to read, the IRS will likely provide more information on when the funds will be available. Watch the IRS Coronavirus Tax Relief and Economic Impact Payments news page for the latest information.
In the meantime, check out this list of side hustles so you can make some extra money while you’re waiting on your stimulus check. This way, you can in effect, create your own stimulus.
Things are looking hopeful as the world hits the one-year mark on a massive pandemic. But the U.S. isn’t out of the woods just yet. There are still nearly 10 million people out of work, and many businesses have been forced to close.
It’s a great time for a third stimulus check. The good news is, payments are currently processing. But there is some bad news. In the middle of a busy tax season, processing may take a little longer than usual. But in early April, the IRS pushed the next wave of checks out, so if you haven’t received one yet, you may see it soon.
Before you get excited, though, this stimulus package has a lower income limit than previous payments.
Here’s what you need to know about your third stimulus check.
What’s Ahead:
What will my payment be?
The first stimulus payment, issued in April 2020, provided $1,200 to each qualifying individual. There was a second, lower, payment, approved in Dec. 2020 for $600. But before the second payout was fully distributed, the federal government was already discussing a third payment that was more in line with the first.
The third stimulus payment is actually higher than both of the previous checks, at $1,400. The earliest payments were direct deposited in March, but the IRS said that later batches would include a combination of direct deposit and mailed payments. Those who receive IRS payments by mail will receive the stimulus on either a check or debit card.
Who qualifies for a payment?
If you didn’t qualify for a stimulus payment the first or second time, you won’t this time, either. In fact, the income ceiling is even lower for the third payment. This round of stimulus payments isn’t available at all to those who made more than $80,000, or $160,000 for couples. Those making between $75,000 and $80,000, or $150,000-$160,000 for couples, will receive a reduced amount.
When to expect payment
The IRS has already issued the third payment to more than 127 million people. This round left out many who receive benefits from Social Security, Supplemental Security Income, the Railroad Retirement Board, and Veterans Affairs, which is what the most recent push was designed to address.
But if you still don’t see your payment in a couple of weeks, there’s a way to track your money. The IRS has set up a Get My Payment tool that can help you track the status of your payment. This will be the most up-to-date information on any payments coming to you from the IRS.
If it seems like this time around, payment is taking longer, there’s a reason for that. The IRS handles processing stimulus payments, and the agency is in the heart of tax season. The tax deadline has been extended to May 17, so that means the IRS is dealing with processing returns, refunds, and stimulus payments all at once.
How do I get my third stimulus payment?
As before, stimulus payments will be deposited in your account. If you’ve already set that up with the IRS, you’re all set. The IRS will use the information that it already has on you. This includes previous tax refunds you’ve had directly deposited in your bank account in addition to the prior stimulus payments.
If you haven’t set up direct deposit with the IRS, now’s a great time to take care of that. When you file this year’s taxes, choose direct deposit as the payment method for your refund. This will ensure any future stimulus payments will get to you as quickly and reliably as possible.
What if you don’t have a bank account? As with your previous payments, you’ll get a paper check or debit card in the mail. This process takes longer, though, so if you haven’t already set up direct deposit, this could be the reason you haven’t seen your payment yet.
Should you wait to file your 2020 taxes before your stimulus check comes in?
The third stimulus check is based on your most recently filed tax return. That will be either your 2020 or 2019 taxes, depending on where your 2020 filing is in the process. So if you didn’t qualify last time around, but your income changed, your stimulus payment status eligibility may change, as well.
That brings a very important question. If your income puts you near a possible cutoff, should you go ahead and file your 2020 taxes or wait? If you think you might exceed the income threshold in 2020 when you didn’t in 2019, some tax preparers are saying to wait. However, waiting will delay your refund. It can’t hurt to calculate your adjusted gross income for 2020 and decide whether to wait until the May deadline to file in order to maximize your stimulus payout.
What if I’m still waiting on my second payment?
Forget the third stimulus check. What if you’re still waiting for the second one to hit your bank account? (Or arrive in your mailbox?)
If you haven’t yet received your first or second stimulus check, the IRS has directed taxpayers to file your 2020 tax return to get it. You’ll simply claim it as a tax credit when you file your return.
If you use tax preparation software, it should guide you through the process. If not, see the instructions for Form 1040 and Form 1040-SR.
While you’re filing, though, make sure the account information the IRS has on you is correct. If you never received your stimulus payments, it could be a sign that the IRS can’t get payments to you, which means you may have trouble getting your refund, let alone any future stimulus payments.
Summary
The third stimulus payment may not come through as quickly as previous payments, but it’s on its way. Filing your 2020 tax return and monitoring your payment status through the IRS are the best things to do in the interim. You’ll likely receive your payment soon enough, but the wait can be challenging, especially when all your friends are receiving theirs.
The United States is home to a large population of both elderly and disabled people, but only 5% of housing across the country is equipped with features that make them accessible to such individuals.
This was one of the takeaways this week from “Laying the Foundation: Housing Accessibility and Affordability for Older Adults and People with Disabilities,” a hearing held by the U.S. Senate’s Special Committee on Aging.
Over 60 million people — roughly 26% of the total U.S. population — have a disability. An additional 20% of the total population is at or over the age of 65, a figure that is increasingly trending upward and which will challenge the U.S. economy in the years ahead.
However, homes with accessibility features for older and disabled people only make up less than 5% of the nation’s housing supply, as reported by CNBC.
Despite a climate of intense political polarization, committee members on both sides of the aisle appeared to recognize the inadequacy of that fact in addressing the housing needs of American citizens, and vowed to work together in an effort to find legislative solutions.
While the opening statements from the committee chairman and ranking member, respectively, were rife with political finger-pointing over the issue, the actual content of the conversation between committee members and panelists indicated amenability between Democrats and Republicans to address these challenges legislatively.
“Sometimes we’re at odds in terms of what we should do, but there’s always practical legislation in the middle, and I’d hope that we can have those conversations that get us there,” said Sen. Mike Braun (R-Indiana), ranking member of the committee according to CNBC.
One piece of legislation discussed was the Visitable Inclusive Tax Credit for Accessible Living (VITAL) Act, introduced by committee chairman Sen. Robert Casey (D-Pennsylvania) earlier this year.
It would increase “the low-income housing tax credit to serve the housing needs of older people and people with disabilities,” the bill’s summary says. “Specifically, the bill increases state allocations of the credit and credit amounts for projects for assisting households with disabled individuals.”
Domonique Howell, a witness for the hearing and a disability housing advocate from Philadelphia, described her own challenges living as a disabled person and the difficulty she and her family have faced in finding an accessible place to live. When the elevator breaks in her current apartment complex, for instance, she and others have to stay in their homes until a repair is made which can sometimes take “weeks,” she said.
“[Pennsylvania and other states should] develop affordable accessible housing to match the needs of residents,” she said during the proceeding.
There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
When I bought a home three years ago, the economic climate was different from today. Back then, a house would could be listed on Friday and a contract signed by Monday. It was easy to get a loan (too easy, in fact) and you could make every mistake in the book and still find yourself a home.
Despite the market differences, sound financial planning and a handful of smart moves will ensure that you won’t regret grabbing your piece of the American dream. This post isn’t going to go over the merits of buying versus renting or how you should pick a real estate agent. Instead, I’ll focus on the things you should do to prepare yourself before applying for a loan and then buying a home.
Don’t borrow money Your home will likely be the single largest debt you will take on and represents the greatest risk in the eyes of potential lenders. With lending rules tightening, it’s becoming more and more important that you make yourself look as safe as possible. Safe means as little debt as possible and as little access to credit as possible.
Don’t apply for any new credit cards. They could be offering some hot credit card offers of a hundred bucks to make one purchase or 0% balance transfer, but you must avoid it at all costs. That hundred dollars will cost you thousands, if not tens of thousands, over the life of your loan. Don’t buy a car. Don’t take advantage of 12-month 0% financing “same as cash” offers at Best Buy to get that new flatscreen HDTV you’ve been thinking of.
Don’t make any drastic changes Don’t shuffle your funds around, don’t change your bank, and most of all don’t change your job. This won’t necessarily affect your credit score (some banks will do a hard credit check, which negatively affects your score) but it will give the lender headaches when they try to decipher all the moves you’ve made.
Making large transfers will bring up questions of fund origins. Is this really your money or did you receive it as a gift? Why are you opening up new accounts and shifting your money when you expect to spend it soon? Such moves will result in more questions for you to answer, which takes energy and will prolong the review process. It’s not necessarily bad — just a pain.
The only exception to the “not necessarily bad” is the part about changing jobs. Lenders like stability; stability equals low risk. If you’ve been working with a company for thirty years (or even five), chances are you’re going to work there for a while. If you’ve been working with a company for three months, there’s no saying how long you will work there. Maybe you have a falling out and are fired, maybe you can’t hold a job, maybe you’re perfectly fine and will have a successful career there. All those maybes make lenders nervous. Avoid changes if you can.
Play house There are two crucial steps to “playing house” (financially). First, you need to correctly estimate your monthly payment. Remember that your monthly payment will include the mortgage, taxes, and homeowners insurance. You will also probably want to add a buffer for maintenance and repairs, as you likely will have both. In three years, my wife and I have spent at least $10,000 in repairs and improvements (windows, roof, carpeting).
Another bit of information to research is how the recent federal housing rescue bill or how local first time home-buyer assistance programs may apply to you. The federal housing rescue bill offers a 15-year zero interest $7500 loan in the form of a tax credit to new home buyers. In Maryland, first time home buyers get one half of the transfer tax waived, which can be up to 0.75% the sale price of the home. Both of those will play crucial roles in how you calculate your monthly payment.
The second step is actually playing by budgeting for the mortgage. If you are currently renting, deduct rent from your monthly mortgage payment, and transfer those funds to an account that offers high interest savings. A great place to put those funds is in a fund you designate for your downpayment. As the months pass, you will get a feel for how much you can comfortably afford rather than simply guessing.
This also serves another purpose: it will keep you within your house budget. The Realtor will likely want to show you homes that are outside of your price range. It’s always good to see what is a little above and a little below your range just to see what the difference in value is. By playing house, you have a more accurate feeling of how differences in the monthly payment will affect your lifestyle because you’ve lived it.
Sell or donate your junk Two things will happen when you buy your house:
You will be short on cash.
You will have to move.
By selling some of your junk now, you get a little extra cash, which will likely go towards all the little things involved with a home, and you have less stuff to move. Your wallet will thank you for the former and your friends — whom you will have bribed with pizza and beer to help you move — will thank you for the latter.
Sell or donate anything and everything you honestly can’t see yourself ever using on your new home. Good stuff to purge includes:
Old furniture
Books (do you really need to keep your college textbooks?)
Old clothes
Electronics equipment
Decorations and wall coverings
This will require a bit of intestinal fortitude and an honest assessment of your belongings. It’s difficult to sell or give away things with emotional value. That couch you’ve had since college or that poster you hauled all the way from home — they have emotional value. If you can think of a great place in your new home for it, keep it; if you really can’t (where will a ratty old couch go?), give it a new home.
Donation is a great solution if you’re on a time crunch because organizations like Goodwill or the Salvation Army will happily come and haul away your gently used items absolutely free (and you get a bigger tax deduction).
I hope this list of ideas has been helpful, these were some of the tricks I used when my wife and I bought our first home three years ago. Since then, it’s been a wonderful ride. Home ownership truly has been all it’s cracked up to be. You might be buying a house, but it truly becomes your home.
The first-time homebuyer tax credit can now be used as a down payment, according to a mortgagee letter released by HUD today.
It can be used either as secondary financing (second mortgage) or as a short-term loan, otherwise known as a bridge loan, enabling homeowners to come in with little or zero down (it can also be used for closing costs and other prepaid expenses).
There are some rules and regulations tied to the so-called tax credit advance loans, like qualifying debt-to-income ratios and no cash in-hand, but it still seems like an irresponsible move given the financial climate.
“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” said HUD Secretary Shaun Donovan in prepared remarks.
“So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to “monetize” the tax credit through short-term bridge loans.”
Unfortunately, this very practice led to billions in losses at the FHA; similar seller funded down payment assistance loans accounted for just 14 percent of all FHA loans outstanding, but accounted for 31 percent of all FHA foreclosures.
In fact, Donovan recently noted that the FHA would have needed appropriations of $2.5 billion to operate had the loans not been recently banned.
First-time homebuyers, defined as those who have not owned property in the three years preceding purchase, are entitled to receive up to $8,000 that doesn’t need to be paid back if the home is retained for three years.
It’s a dollar-for-dollar reduction and also refundable, meaning the tax credit may be claimed even if the homebuyer doesn’t have sufficient federal income tax to offset it.
It seems to be more of an incentive for homebuilders than homeowners, but that’s just one opinion.
Earlier this week, HUD Secretary Shaun Donovan mentioned that the first-time homebuyer tax credit could be used as a down payment, but that may no longer be the case.
The mortgagee letter with the program details has since been removed from the HUD website; a call to the FHA confirmed this had occurred.
The employee I spoke with said the program is essentially pulled as of now, but nothing official has been released regarding the fate of the so-called tax credit advance.
So as it stands now, it appears as if the tax credit cannot be used for a down payment. It’s unclear why the FHA withdrew (or at least stalled) the program, though it could have something to do with perceived risk involved.
Allowing first-time homebuyers to purchase a property with nothing down is certainly high-risk, and the practice of using tax credits for down payments is fairly similar to the seller paid down payment assistance loans that nearly sunk the FHA.
Last summer, FHA Commissioner Brian D. Montgomery said the agency realized $4.6 billion in “unanticipated long-term losses,” largely due to an increased number of seller-funded loans in its portfolio.
The loans, which accounted for 14 percent of all FHA loans outstanding and 31 percent of all FHA foreclosures, are no longer available.
If they hadn’t been banned, the FHA would have needed appropriations of $2.5 billion to operate.
While I’m sure the loan program could help some borrowers in need, it could also lead to abuses, which may outweigh the positives.