Homeowners can borrow up to $25,000 for home energy improvements under a new FHA home equity loan program announced today.

FHA PowerSaver is a two-year pilot program that will be made available through select lenders to qualified borrowers in certain parts of the country. Borrowers can use the funds to make energy efficiency improvements they desire, including insulation, new furnaces or air conditioners, geothermal systems, new doors or windows, water heaters and the like.   To qualify, borrowers must have at least some equity in their homes, a FICO credit score of 660 or above, and a total debt-to-income ratio of no more than 100 percent. Read full post…