FHA PowerSaver Loan Announced
In November 2010, the Department of Housing and Urban Development issued a press release about FHA PowerSaver--a pilot program that offers qualified FHA loan applicants a low-cost loan to help homeowners install energy saving upgrades to their homes. The new FHA PowerSaver loan is offered as part of Vice President Joe Biden's Recovery Through Retrofit program, which started in 2009.
The FHA PowerSaver loan offers up to $25,000 for qualified FHA borrowers with equity in their homes. It can be used to install insulation, solar panels, geothermal energy systems and other energy-saving improvements.
Vice President Biden says the Recovery Through Retrofit program and the FHA PowerSaver program is a big help for homeowners looking for savings on their energy bills, but the effects of such improvements on a widespread basis are also important. More efficient homes reduce power consumption needs and Biden says the demand for such upgrades creates more jobs--something definitely welcome in today's economy. "Together, these programs will grow the home retrofit industry and help middle-class families save money and energy." Biden said in a HUD press release.
PowerSaver was created to help more homeowners afford cost saving improvements to their homes, and according to HUD Secretary Shaun Donovan, "will create jobs for contractors, installers and energy auditors across the country."
FHA PowerSaver loans are intended for FHA borrowers with good credit and equity in their home--maximum 100% combined loan to value according to the HUD press release. The Department of Housing and Urban Development has announced the PowerSaver loan as a two year pilot scheduled for 2011. Many such pilot programs go on to become permanent features of the FHA loan system, but a having the pilot program in and of itself is no guarantee. Qualified borrowers interested in the FHA PowerSaver loan when it becomes available in 2011 are encouraged to explore the option early to see if it is right for them.
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