DOE and HUD Launch Pilot Home Efficiency Financing Program
April 27, 2011
DOE and U.S. Department of Housing and Urban Development (HUD) unveiled on April 21 a list of 18 lenders that will participate in a new two-year pilot program offering homeowners low-cost loans to make energy-saving improvements to their homes. These new "PowerSaver" loans, backed by the Federal Housing Administration, will offer homeowners up to $25,000 to make energy efficient improvements of their choice. Applicants can use the loans for the installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
Initially, the PowerSaver pilot program will assist approximately 30,000 homeowners in their financing of energy efficient upgrades. According to HUD projections, more than 3,000 jobs will be created through this pilot program and the impact could be larger if market demand for the loan program increases over time. Loans will be offered to areas across the United States, including regions participating in DOE's BetterBuildings program. Loans are only available to borrowers with good credit, manageable debt, and at least some home equity. See the DOE press release, a PowerSaver fact sheet, and the BetterBuildings program website.