Thanks to HUD’s Leland Jones for the following update:
HUD Secretary Shaun Donovan and Energy Secretary Dr. Steven Chu recently announced that five lenders based in the Northwest are among 18 nationwide selected for FHA’s new Power Saver pilot loan program. They are ShoreBank Enterprise Cascadia, HomeStreet Bank, SOFCU Community Credit Union of Oregon, Paramount Equity Mortgage and the City of Boise.
Through PowerSaver, homeowners will be able to borrow 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.
FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default. Lenders will retain the remaining risk on each loan, incentivizing responsible underwriting and lending standards.
PowerSaver loans are only available to borrowers with good credit, manageable debt and at least some equity in their home (maximum 100 percent combined loan-to-value).
“PowerSaver hits on all cylinders,” Secretary Donovan said at a Long Island press conference, “by helping credit-worthy homeowners finance these upgrades, cut their energy bills and boost the local job market in the process.”
Find more Oregon-specific HUD news here.
