A New Incentive for Energy-Saving Improvements

There will be a new pilot program launched by HUD that will offer borrowers with good credit an opportunity to obtain low-cost loans to make energy-saving improvements to their homes. The new PowerSaver loans are backed by the FHA and will offer homeowners up to $25,000 to make energy-efficient improvements that include, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, installation of insulation and geothermal systems.

FHA mortgage insurance will cover up to 90 percent of the loan amount in case of default. Lenders will retain the remainder of the risk on each loan, to ensure responsible underwriting and lending standards. There will also be insurance claims payment procedures on PowerSaver loans. Lenders may also be eligible for incentive grant payments from FHA to allow more benefits to borrowers, such as lowering interest rates.

For help in finding and closing on your perfect Hoboken home,contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.