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Federal Housing Administration’s new loan program “Power Saver” allows eligible home owners to borrow money to finance windows, doors, heating, ventilation, solar panels and other high energy efficient retrofits.
Eligible homeowners can borrow up to $25,000 at a 5-7% fixed interest rate with 20 years to pay it back. Some of the qualifications are that the house must be a single family home and be your principle residence. Also your FICO score must be at least 660 and your house must not have negative equity.
Although not mandatory, energy audits are an important element in the program. Most lenders are encouraging owners to sign up for an energy efficient analysis conducted by a certified specialist. The specialist will recommend in detail the types of upgrades or additions that will help cut your energy bills and reduce greenhouse emissions.
Fannie Mae’s “Energy Improvement” mortgage add on program, includes the cost of improvements into the mortgage itself. Nationwide participating lenders allow you to purchase an existing home and make energy efficient improvements.
Fannie Mae requires an audit by a certified Home Energy Rating System expert upfront to justify any changes to your single family house as legitimately cost efficient.
At www.pueblo.gsa.gov you can see a list of other FHA, Fannie Mae, Freddie Mac, U.S. and conventional mortgage loans available to make energy efficient upgrades such as roof top solar panels to your home.
