The purpose of this program is to provide mortgage insurance for a person to purchase or refinance a residence and integrate the cost of energy efficient improvements into the mortgage. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

To be eligible, borrowers are held responsible for approximately 97% of the financing. Borrowers can finance closing costs and up front mortgage insurance premiums into the mortgage. They are also responsible for paying a yearly premium.

Eligible properties are one to two existing units and new construction.

The cost of the energy efficient improvements eligible for financing into the mortgage is the greater of 5% percent of the property's value (not to exceed $8,000) or $4,000.

To be considered for this, the energy efficient improvements must be cost effective, meaning the total cost of the improvements is less than the present value of the energy saved over the useful life of the energy improvement.

The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or energy consultant. Up to $200 of the cost of the energy inspection report may be included in the mortgage.

Other Reno Nevada FHA and VA loans Topics

• Bankruptcy and foreclosures
  
• Down payment gifts
  
• Energy efficient mortgages