Mortgage Monday: Go Green With Power Saver

Go Green With Power Saver

Power Saver is a new loan program through HUD. It is currently a pilot program that could become a major program for residential energy upgrades. Eighteen lenders a signed up to participate in the program so far. What does this mean to home owners?

The home must be your principal residence: no rentals, no investor homes, and no second homes.

You will need to have a minimum FICO score of 660 and your total household monthly debt-to-income ratio cannot exceed 45 percent.

You must have a positive equity in your home. There is no mandatory minimum, but the combined primary plus the Power Saver second lien can not exceed 100% of the appraised value of the home. For example, if you had a 10% equity in your home valued at $200,000, then you could borrow $20,000 through the Power Saver program.

The loan program offers a fixed rate between 5 and 7 percent for as long as 20 years to finance high-efficiency windows and doors, heating and ventilation systems, solar panels, geothermal systems, insulation and duct sealing, making your home more cost efficient when it come to heating and cooling.

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