The borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with:

  • Section 203(b) - purchase or no cash-out refinance
  • Section 203(h) Mortgage Insurance for Disaster Victims
  • Energy Efficient Mortgages (EEM)

Weatherization improvements may be used on:

  • Existing properties (one- to four-units)
  • Condominiums (one unit)
  • Manufactured Housing (single unit)

Eligible energy-related weatherization items include:

  • Air sealing (including weather-stripping doors, caulking window and plumbing penetrations)
  • Insulation (attic, floors, walls, basement)
  • Duct sealing and insulation
  • Smart thermostats and equipment controls
  • Windows and doors
  • Low flow water fixtures
  • Carbon monoxide monitors and other combustion appliance safety measures

The maximum allowable cost (not to exceed actual cost) that can be financed is:

  • $2,000 without a separate value determination;
  • $3,500 if supported by a value determination made by an approved FHA Roster appraiser or Direct Endorsement (DE) underwriter; or
  • no limit if:
    • Supported by a value determination made by an approved appraiser or underwriter; and
    • A separate on-site inspection is made by an FHA-approved fee inspector or DE staff appraiser.

Installation of weatherization improvements must be completed within

  • 30 Days of disbursement; or
  • 90 Days of disbursement if the improvements are part of an energy package for an EEM.