The Department of Housing and Urban Development announced that 18 lenders will participate in a new two-year pilot program that will offer qualified borrowers living in certain parts of the country low-cost loans to make energy-saving improvements to their homes.
Called the PowerSaver Program, the loans are backed by the Federal Housing Administration and offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the 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 Shaun Donovan, Secretary of the HUD. “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.”
Initially, the PowerSaver pilot program is estimated to assist approximately 30,000 homeowners to finance energy-efficient upgrades though higher market demand may increase this impact. According to HUD projections, more than 3,000 jobs will be created through this pilot program and the impact may be larger if market demand for the loan program increases over time.
Participating lenders are largely selected based on their commitment to work in partnership with established home energy retrofit programs provided by states, cities, utilities and home performance contractors. These markets include, but are not limited to, areas of the country participating in the Energy Department’s Better Building Program.
The list of participating lenders include:
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