FHA Energy Mortgage Program
1-2 unit owner occupies (up to four units if tied into 203(k)
$4,000 or 5% of the appraised value (whichever is greater) up to a maximum of $8,000
No additional down payment on the energy improvements is the improvements have a present value greater than the cost of the energy upgrades.
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
All improvements identified by home energy rating as having a combined present value greater than the cost of upgrades
Installation Time Limits:
Home energy rating, contractor bids, B Worksheet
Energy mortgage can be combined with a 203(k)
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.