Looking for way to make your home more energy efficient? FHA PowerSaver Program may work!

With the rising cost of oil, home owners are looking for ways to improve the efficiency of their homes past CFL light bulbs.  However, with the change in the lending environment, home equity loans are few and far between and many times interest rates are not appealing.  Now home owners have another option in the FHA PowerSaver Program.  This program is a new loan program offered through the FHA to help home owners make cost effective improvements that can save energy and allow for greener homes.

The program provides up to $25,000 in a 20 year note that can be utilized to make improvements of their choice, based on a list of DOE (Department of Energy) and FHA approved projects.  Energy efficient heating and air conditioners, water heaters, duct sealing, and solar panels are just a few of the approved items on the list.  It is recommended that the homeowner complete an energy audit that will allow them to choose the most appropriate items to include in the energy remodel/upgrade.

The interest rates are competitive but only certain lenders are approved to make these loans.  For a list of approved lender click here.  This loan will be a subordinate lien and can be just the right answer to homeowners looking to lower their energy bills.  These loans are backed by the government up to 90% and FHA has promised a stream-lined approval process for loan applications for this program.  The borrower must have a credit score of at least 660 and their total debt-to-income ratio can not exceed 45%.  The loan to value total can not exceed 100%.


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