New Home Loans
Earlier this week, HUD announced a new pilot program that offers government sponsored home owner loans for energy-efficient home improvements. With more home owners taking an interest in making their homes energy efficient this provides an additional financing avenue where funding has been limited in the past. This new government loan program is especially advantageous for the multitude of homeowners who are ineligible for home equity loans.
The new PowerSaver loans, backed by the Federal Housing Administration (FHA), will offer homeowners upwards of $25,000 for home energy improvements. Homeowners have a choice of conducting a number of different energy saving improvements including the installation of solar panels, HVAC systems, water heaters, geothermal systems, and duct sealing.
Not only will these government loans aid homeowners in making their houses more green it will also create job opportunities for builders and contractors. That means the program benefits the economy as well as the environment.
This two year pilot program will help middle class American families save energy and save money. While these government loans are backed by the FHA they are looking for lenders to work with them to provide more affordable financing for home energy improvements. Private lenders will be selected based on their commitment to community improvement initiatives and of course their capacity to help with financing. The FHS will take the majority of the responsibility for covering the loans and the private lenders will cover the remaining amount in the event of default.
This is an excellent opportunity for home loan lenders to support community development programs at a time when the market for home energy improvements is growing across the country, whether it’s in a rural, suburban or urban area. People are already taking progressive steps to save money and cut energy costs on their own dime. But these improvements cost money and not every family is in the financial position to make these changes. These government loans will help those low-income families who want to make their homes more energy efficient but can’t due to financial restrictions. The government loans help them transform their homes to “go green.”
With HUD and FHA working together to support economic development and increase energy savings for homeowners this new pilot program will have 18 months to prove itself. Now is the time to take advantage of these government loans and make improvements to your home that will mutually benefit your family and the environment.
Did You Know You May Be Eligible For Housing Grants?
Housing grants give people the means to live safely and securely in a home of their choice. First-time homebuyers and those who rent are all eligible for these necessary housing grants. Many government agencies provide housing grants; the most popular is the Housing and Urban Development agency (HUD grants). For years, housing grants have helped Americans to build stable lives for their families.