Finance your Upgrade with PowerSaver
Many Californians will soon be able to take advantage of PowerSaver loans, a financing product for energy efficiency improvements.
On April 21, the Department of Energy (DOE) and the Department of Housing and Urban Development (HUD) announced the 18 national lenders that will participate in the PowerSaver Energy Efficiency Loan Pilot. Six of these lenders will be able to originate loans in California.
PowerSaver Loans will provide eligible homeowners with up to $25,000 for energy saving measures including insulation, air sealing, HVAC systems, and solar PV. These loans will be available to borrowers with good credit and reasonable debt-to-income levels who have some equity in their homes. Any loans over $7,500 will be secured by a second lien on the property and consequently the underwriting process will closely resemble that of obtaining a home equity line of credit.
The program will first launch as a two-year pilot. The lenders in the pilot program will partner with established energy efficiency retrofit programs including the Better Buildings Programs, of which California is one. Because the number of lenders is limited the loans will only be available in certain areas and will likely serve roughly 30,000 homeowners.
HUD developed the PowerSaver Loans as part of the Recovery Through Retrofit program to fill a gap in affordable home energy retrofit financing. In order to attract private capital at affordable rates, FHFA mortgage insurance will partially cover the loan amount in the event of default. The remaining risk will be borne by the lender in order to ensure responsible underwriting and lending.
The following approved lenders may be operating in California:
Neighbors Financial Corp.
Paramount Equity Mortgage Inc
Quicken Loans Inc
Sunwest Mortgage Corp.
WJ Bradley Mortgage Capital Corp.