5. How do I know the PowerSaver loan is the best loan for me?

There may be several loan options applicable to your needs. Work with your loan officer to select the loan that is best for you. While PowerSaver is an outstanding product, we also offer other energy efficient loans and more traditional loan products as well. You and your loan officer should consider your personal and financial circumstances to help determine which loan fits you best. Find out more about your options. back to top

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6. My bank offers home equity loans and lines of credit. What is different about PowerSaver?

PowerSaver was specifically designed by the Federal Housing Authority to meet the requirements of energy saving home improvements. Unlike other products, it allows borrowers to use up to 100% of the equity in their homes in order to secure the loan. This allowance ensures many more homeowners will be able to improve their homes. In addition, the long term and low interest rate of the PowerSaver loan make it one of the lowest monthly payment options available. To top it all off, in most cases, the interest will be tax-deductible.

If PowerSaver is not the right energy efficient loan program for you, our Energy Program experts can find one that fits your needs. Call them at (970) 679-7454 or find out more information.

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7. How does the PowerSaver loan compare with refinancing?

PowerSaver is an ideal loan for those who do not wish to refinance their first mortgage. However, in many cases it may be more beneficial to use one of our refinancing products. For example, the ENERGY STAR Mortgage and the Energy Saving Mortgage both offer extremely low interest rates and very long repayment terms that help homeowners save money each month and in the long term at the same time. Ask your loan officer if these loans are right for you, or find more information.

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8. What qualifies as an energy improvement?

It’s really up to your energy auditor. Upon obtaining the energy audit, you will be provided with recommendations concerning the most effective energy improvements for your property and situation. Common recommendations include additional insulation, air sealing, replacing old lighting with energy-efficient lighting or light bulbs, replacing old heating and air-conditioning systems, insulating crawl spaces, or replacing a hot water heater. In addition to updating existing systems, you may also want to make changes that give you access to new energy sources by adding solar panels, a wind generator, or geothermal heating and cooling. The FHA maintains a list of currently allowable improvements (PDF), but if you have something specific to your property that you would like to investigate, please give us a call.

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9. Does my improvement have to be completed within a specific timeframe?

Yes. You will have up to six months to complete the improvements on your home.

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10. What can I expect from the initial and final energy audits?

The energy auditor will call you to schedule an appointment. During that call, he or she will talk you through the details of the audit and notify you of things you should do in preparation, like cleaning out the ashes from a wood-burning fireplace.

It will take approximately 2 hours for the auditor to complete the physical inspection and testing of the home. Many people find it enjoyable to accompany their energy auditor so that they can learn more about their homes. During the audit, your inspector will conduct a variety of tests. Some are universally required, and others may be specific to your home.

The first required test is a blower door test. In this test, a large fan will be connected to your door to create negative pressure within your home. By measuring the amount of pressure loss within the home, the auditor can tell how much air leakage there is both before and after performing the air sealing improvements. If the final test does not show that the leaks have been sealed, then the contractor will be asked to continue improving the air tightness of the home.

The second required test uses an infrared camera to see with extreme detail the flow of heat within your home. This technology sees through the walls of your home and makes the locations of air leaks more evident.

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