*UPDATE: The PowerSaver Grant from HUD and FHA was discontinued in May 2015. But you can now take advantage of the AmeriFirst PowerSaver grant (more information here), and be sure to download our AmeriFirst PowerSaver Buyer's Guide for more detailed information.
What exactly is the PowerSaver Grant? How does it help home buyers and homeowners? Let's take a look. Many home buyers and current homeowners see “going green” as a great idea. Making your home more energy efficient is a terrific way to save money in the long run. However, it tends to cost money up front. Plus, how do you know you’re actually making a meaningful difference to your budget and the environment?
A new option for home buyers looking to make some serious home improvements to their abode is the PowerSaver Grant from the U.S. Department of Housing (HUD) and FHA. PowerSaver is a federal grant through AmeriFirst Home Mortgage that pays home buyers’ closing costs when they make eligible home improvements, proven to be energy efficient upgrades.
Imagine it this way: You find a home you really like, as it’s in a great neighborhood with a lot of potential. However, the furnace is old, the windows are the old single-pane style with a few missing their storm windows and the water heater looks like it belongs in an antique store. If you take that house and finance it with the FHA 203k renovation loan, and make the upgrades to those items, you might be able to have AmeriFirst Home Mortgage pay your closing costs.
The total bill for the eligible upgrades has to add up to at least $3,500 and be rolled into the FHA 203k loan. Once you get to that point, the PowerSaver Grant can cover the 1% origination fee, the appraisal fee, the underwriting fee and an optional energy audit – up to $500. For the average buyer that should add up to about $2,000.
The benefits to you as the buyer begin to add up right away. Of course with Energy Star appliances like a water heater or furnace, you’ll see monthly savings on your utility bills. This will also happen when you perform window replacement with eligible Energy Star-rated windows, seal your duct work and other possible upgrades. Also, by financing this work into an FHA 203k, it’s one loan with low mortgage rates. Plus we pay your closing costs as mentioned above.
Those are the basics when it comes to the PowerSaver Grant. The video below answers the question with an interview with Renovation Lending Program Manager Joe Daly here at AmeriFirst Home Mortgage.
See the embedded video here - What is The PowerSaver Grant?
PowerSaver is a grant from FHA that allows AmeriFirst to cover some closing costs when a buyer makes specific eco-friendly home improvements with FHA 203k.
The PowerSaver Grant helps home buyers and homeowners add energy efficient upgrades to their home, qualifying for a rebate of sorts - approximately $2,000 in closing costs paid by AmeriFirst Home Mortgage as "lender credits." The amount depends on the amount of the loan.
Eligible home improvements include:
- Energy Star furnace
- Energy Star air conditioner
- Energy Star water heater
- Duct sealing
- Approved insulation
- Approved window replacement
- Storm window/door installation
- Energy Star specified roof repair/replacement
- Ground source heat pump
- Sustainable energy upgrades like fuel cells, solar panels or wind turbine