The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced rate property improvement loans through Title I lenders. Only lenders approved by HUD specifically for this program can make loans covered by Title I insurance. HUD encourages homeowners to work directly with their lender in selecting a home repair contractor in order to prevent inflated estimates. Provides mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. Borrowers are able to finance closing costs and the up front mortgage insurance premium into the mortgage.
Borrowers are also responsible for paying an annual premium.
Eligible properties are one to two existing units and new construction. To be eligible for inclusion in the mortgage, the energy efficient improvements must be cost effective, meaning that the total cost of the improvements is less than the total present value of the energy saved over the useful life of the energy improvement. HUD Reverse Mortgage Program Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The program allows homeowners to borrow against the equity in their homes. Homeowners whose circumstances change can restructure their payment options.