April 25, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has teamed up with eighteen national, regional and local lenders to launch a new two year pilot program to provide low cost loans to homeowners for make energy-saving improvements to their preperties in certain parts of the country.
The new “PowerSaver” loans will be backed by the Federal Housing Administration (FHA) and provide homeowners with up to $25,000 to make energy-efficient improvements ranging from installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
“We believe the market is right for a low-cost financing option for families who want energy-saving technologies in their home,” said HUD Secretary Shaun Donovan. “PowerSaver hits on all cylinders by helping credit-worthy homeowners finance these upgrades, cut their energy bills and boost the local job market in the process. While FHA and these lenders are jumpstarting this pilot, we hope its success will lead to a growing private sector interest in making these types of loans.”
The program is designed to assist approximately 30,000 homeowners, with the FHA insuring up to 90 percent of the loan amount. Borrowers must have good credit, manageable debt and at least some equity in their homes (maximum 100 percent loan-to-value).
HUD projects that more than 3,000 jobs will be created through the program with an even greater impact if the market demand for the loan program increases over time.
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. The announcement is part of an interagency effort including 11 departments and agencies and six White House offices.
The eighteen lenders approved for PowerSaver loans are:
AFC First Financial Corporation
Bank of Colorado
City of Boise, Idaho
Energy Finance Solutions
Neighbor’s Financial Corporation
Paramount Equity Mortgage, Inc.
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.
W. J. Bradley Mortgage Capital Corporation
Tags: HUD, FHA, PowerSaver, energy efficient, low cost loans, energy-saving improvements, approved lenders