18 national, regional and local lenders will participate in a 2-year pilot program to offer credit-worthy homeowners in certain parts of the country low-cost loans for energy upgrades.
Backed by the Federal Housing Administration, the PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
It's estimated the program will help 30,000 homeowners, but it's hoped that successful outcomes will lead to growing private sector interest in making these kinds of loans. HUD projects that over 3,000 green jobs will be created through the pilot program alone.
Currently, there are few options for homeowners that want to finance these improvements.
Participating lenders were selected because of their willingness to work with home energy retrofit programs provided by states, cities, utilities, and home performance contractors. These markets include, but are not limited to, areas of the country participating in the Energy Department's Better Buildings Program.
FHA mortgage insurance will cover up to 90% of the loan amount in the event of default, but lenders will retain the remaining risk to ensure responsible underwriting and lending standards.
PowerSaver loans will be available to people that have good credit, manageable debt and at least some equity in their home (maximum 100% combined loan-to-value).
HUD developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009 by Vice President Biden's Middle Class Task Force to develop federal actions that would expand green job opportunities in the United States and boost energy savings by improving home energy efficiency.
FHA PowerSaver Approved Lenders
- Admirals Bank
- AFC First Financial Corporation
- Bank of Colorado
- City of Boise, Idaho
- Energy Finance Solutions
- Enterprise Cascadia
- HomeStreet Bank
- Neighbor's Financial Corporation
- Paramount Equity Mortgage, Inc.
- Quicken Loans
- SOFCU Community Credit Union
- Stonegate Mortgage Corporation
- Sun West Mortgage Company, Inc.
- The Bank at Broadmoor
- University of Virginia Community Credit Union, Inc.
- Viewtech Financial Services, Inc.
- WinTrust Mortgage
- W. J. Bradley Mortgage Capital Corporation
