Under the new HUD and DOE Home Energy Score partnership, in areas where the Home Energy Score is available, single family households will be able to increase their access to financing tools to make energy efficiency improvements. DOE’s Home Energy Score offers a “miles per gallon” type rating to estimate a home’s energy use on a 10-point scale. A “1” corresponds to the least energy efficient homes and a “10” corresponds to the most energy efficient homes, while the average U.S. home will score a “5.” Through this new partnership, homebuyers or homeowners who want to obtain an FHA-insured purchase or refinance mortgage for a single family home that receives a Home Energy Score of 6 or higher will be eligible to increase their income qualifying ratio by 2 percentage points above the standard Single Family FHA limit, making it easier to secure financing to make these improvements.
- FACT SHEET: President Obama Announces New Actions to Bring Renewable Energy and Energy Efficiency to Households across the Country
- National Mortgage Professional Magazine: FHA Set to Incorporate DOE Home Energy Score Program
- Climate Central: White House: Efficiency Key to Tackling Climate Change