“We believe the market is right for a low-cost financing option for families who want energy-saving technologies in their home,” said Secretary 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 Obama administration is a big champion of increased energy efficiency, but only lately have builders and homeowners generated enthusiasm for green homes, at least on a mass scale. And even as owners and builders climb aboard the energy efficiency bandwagon, banks and lenders will be the ones greasing the skids for all those green home maintenance improvements.
According to a HUD statement, PowerSaver loans will be “backed by the FHA but require these lenders to have significant ‘skin in the game.’ FHA mortgage insurance will cover up to 90% of the loan amount in the event of default.”
With the first 18 banks committed to the project, HUD estimates that there’s enough seed money in the first two years of the PowerSaver program to kick-start energy improvements for 30,000 U.S. homes. The agency says the green homes initiative could add 3,000 jobs to the U.S economy.
To qualify for a green home improvement loan, the government says that you must have a good credit history and decent equity in your home. The next step is to contact a loan representative at one of the following 18 banks participating in the PowerSaver program: