HUD recently announced FHA PowerSaver, a $25 million two year pilot energy retrofit loan program to select areas.  San Diego is included in this pilot program. The pilot loan program is exclusively for energy retrofits.  The program is currently seeking lenders interested in participating in this pilot project.  Interested lenders must be active FHA Title One lender.  For further qualifications, please visit Appendix A of HUD’s Press release.

PowerSaver Loan will be similar to the FHA Title 1 home improvement loans.  PowerSaver is specific to only energy retrofit improvements like air sealing, insulation, heating/cooling systems and water heaters.

PowerSaver is only applicable to single family homes.  Borrowers are required to have a FICO score of 660 or higher and debt-to-income ratio cannot exceed 45%.  Loans will be limited to a 15 year loan.

According to Recovery Through Retrofit report, 130 million homes generating 20% carbon dioxide emissions.  Energy Retrofits can lower energy use up 40% per home and lower associated greenhouse gas emissions.

Homeowners can save thousands of dollars in leveraging these programs at the same time contributing to sustainability.  “This is a timely solution for the emerging Energy Retrofit industry” said Will Johnson, Energy Auditor with Inspection Perfection.  “This fills an important void of financing for anticipated Energy Retrofit rebates.  2011 will be the year for Energy Retrofits.”

For complete press release and to participate as a lender, please visit:  http://www.sdinspection.com/HUD_PowerSaver_Pilot.pdf