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.