Government May Help Pay for Your Home Improvements

The Department of Housing and Urban Development (HUD) recently announced that it has initiated a program that could help you pay for home energy improvements. This program will grant loans, called FHA PowerSaver Loans, to credit-worthy borrowers up to $25,000 to make energy efficient improvements of their choice.

PowerSaver loans will be backed by the FHA, and up to 90% of the loan amount will be insured by FHA mortgage insurance. Lenders will be chosen to participate in the program based on commitment and ability to provide energy saving loans. Interest rates will be low and borrowers must have at least some equity in their homes, but it is not yet clear exactly how much and whether it will be a case-by-case basis.

Examples of energy efficient improvements include duct sealing, new doors and windows, water heaters, HVAC systems, solar panels, insulation and georthermal systems. It is not clear whether energy efficient appliances–such as washers and dishwashers–are included but most states have programs that provide rebates for these appliances.