On November 9, 2010, HUD announced a new pilot program that will offer credit-worth borrowers low-cost loans to make energy-saving improvements to their homes. Back by FHA, these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels and geothermal systems.
HUD and FHA developed PowerSaver as part of the Recovery through Retrofit initiative launched in May 2009. HUD published a notice seeking the participation of a limited number of mortgage lenders in the two-year pilot program slated to begin in early 2011.
Lenders will be selected to participate in the PowerSaver pilot based on their capacity and commitment to provide affordable home energy improvement financing. PowerSaver loans will be backed by the FHA- but with significant “skin in the game” from private lenders. FHA mortgage insurance will cover up to 90% of the loan amount in the event of default.
PowerSaver loans are only available to borrowers with good credit, manageable overall debt and at least some equity in their home (maximum 100% combined loan to value).
- US HUD launches new program to offer low cost home energy efficiency loans (newstatesman.com)
- HUD Announces Energy Efficient Home Loan Pilot Program (matternetwork.com)