logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Action Movies
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel
Southwest USA


dailyclick
All times in EST

Full Schedule
g
g Home Ownership Site

BellaOnline's Home Ownership Editor

g

Proposed New FHA Loan

Guest Author - Rose Mary

FHA (Federal Housing Administration) together with HUD (Housing and Urban Development) have unveiled a new mortgage loan program that will become available in 2011. In their effort to help homeowners obtain affordable loans, this new loan is for borrowers who wish to make energy efficient improvements to their homes.

The new FHA Power Saver program will actually be a home equity loan in amounts up to $25,000 for energy improvements such as air conditioners, furnaces and heating, water heaters, window and door replacements, insulation, solar panels, etc. This loan is for borrowers who wish to make energy improvements, but with today's tough lending standards, are unable to secure a home improvement loan. As with any home equity loan, there must be equity in the home in order to qualify. The combination of the regular mortgage and energy loan cannot exceed 100% of the home's appraised value.

As with all loans, even FHA, there are credit guidelines for approval of this loan. Credit scores are required with this loan with 660 being the minimum. The debt to income ratio cannot exceed 45%. FHA will insure 90% of this loan with the approved lenders insuring 10% which will insure against risky lending.

This program is actually a two year pilot program that will be available in certain areas in each state while some areas will offer it statewide. The purpose of the program will be to see if homeowners actually reduced their energy consumption after the improvements were install. They will also be looking at statistics to see if homeowners realized lower energy bills as a result of the upgrades.

If the program takes off, it could mean more competition in the solar energy arena and more jobs in the home improvement industry. Although this loan is scheduled for 2011, FHA still have the Title 1 program available for home improvements and the EEM, Energy Efficient Mortgage available. These are all affordable loans for homeowners who want to update their homes, bring them up to current codes and save money on energy.











This site needs an editor - click to learn more!

Add Proposed+New+FHA+Loan to Twitter Add Proposed+New+FHA+Loan to Facebook Add Proposed+New+FHA+Loan to MySpace Add Proposed+New+FHA+Loan to Del.icio.us Digg Proposed+New+FHA+Loan Add Proposed+New+FHA+Loan to Yahoo My Web Add Proposed+New+FHA+Loan to Google Bookmarks Add Proposed+New+FHA+Loan to Stumbleupon Add Proposed+New+FHA+Loan to Reddit




RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map


For FREE email updates, subscribe to the Home Ownership Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Rose Mary. All rights reserved.
This content was written by Rose Mary. If you wish to use this content in any manner, you need written permission. Contact BellaOnline Administration for details.

g


g features
Homeownership is a Responsibility

Is a Refinance Right For You?

Should You Own a Home

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor