Two new mortgage programs for energy improvements

Both the Federal Housing Administration (FHA) and mortgage investor Fannie Mae recently launched startups in the energy conservation arena.

FHA’s program, “PowerSaver,” allows eligible owners to borrow up to $25,000 at fixed rates between 5 and 7 percent for as long as 20 years to finance high-efficiency windows and doors, heating and ventilating systems, solar panels, geothermal systems, insulation and duct sealing, among other retrofits.

Fannie Mae’s “energy improvement” mortgage add-on folds the cost of the improvements, capped at up to 10 percent of the estimated market value of the home after the energy-efficiency enhancements, into the mortgage itself.