FHA PowerSaver Home Energy Retrofit Loan Pilot Program

The FHA PowerSaver Home Energy Retrofit Loan Program offers borrowers low-cost loans of up to $25,000 to make energy-saving improvements to their homes, including solar power generation systems. These loans are backed by the Federal Housing Administration (FHA).

PowerSaver began as a nationwide two-year pilot program, launching in 2011. FHA has selected lenders to take part in the program, who are required to target market areas that have already taken strong steps to expand home energy improvements, such as educating consumers about the benefits of home energy improvements and ensuring qualified contractors are available to do the work.

General Program Requirements

  • Minimum credit score: 660
  • Maximum total debt to income ratio: 45 percent (monthly income divided by monthly debt payments)
  • Maximum combined loan-to-value (market value of the home divided by first mortgage loan balance and PowerSaver): 100 percent (Note: this requirement is not applicable in certain conditions).
  • Property type: One- unit, owner-occupied, principal residence properties only.
  • Appraisal requirement: Exterior-only inspection residential appraisal or other FHA accepted method of property valuation.

PowerSaver insures a lien positioned in first place, or second place, and also insures loans without a lien, as long as the loan amount is less than $7,500.

To obtain an FHA PowerSaver loan, contact an FHA-approved lender who is participating in this pilot program:

To read more about this program, go to:

Utah Applied Solar Energy, LLC  2015