FHA Energy Mortgage Program
Program Summary
Eligibility:
1-2 unit owner occupies (up to four units if tied into 203(k)
Improvement Financing:
$4,000 or 5% of the appraised value (whichever is greater) up to a
maximum of $8,000
Down Payments:
No additional down payment on the energy improvements is the
improvements have a present value greater than the cost of the energy
upgrades.
Loan Limits:
FHA maximum loan limits can be exceeded by the energy improvements
being financed
Loan to Value:
Final LTV may exceed 100% of appraised value when the energy
improvements have a present value greater than the cost of upgrades
Eligible Improvements:
All improvements identified by home energy rating as having a combined
present value greater than the cost of upgrades
Installation Time Limits:
90 days
Necessary Documentation:
Home energy rating, contractor bids, B Worksheet
203(k):
Energy mortgage can be combined with a 203(k)
New Homes:
The FHA Energy Mortgage applies to new homes. The home energy rating
would be calculated to meet minimum energy code to base calculated
savings. In addition a 2% debt-to-ratio stretch offered in loan
qualification.
