Can I use the HOPER program when closing on a home & for green initiatives?
The HOPER program could be used to reduce the financial stress buying a home can have by helping cover closing costs or a permanent rate buydown.
The HOPER program, or home ownership, promotion, education and research, helps homebuyers by offering funds that could be put toward closing costs or a permanent rate buydown. The goal of this program is to promote living a greener life while making homeownership and getting a mortgage more affordable.
To take advantage of the HOPER program, you can start with an online mortgage application.
How does the HOPER program work?
The HOPER program offers eligible homebuyers up to $13,000, or 3.5% of the home’s purchase price.
Homeowners can use their HOPER program funds to help with closing costs and permanent rate buydowns, and in return, homeowners will have to commit to making their home energy efficient by installing solar panels. Your solar panel installation through the HOPER program could qualify you for additional tax savings*.
Eligibility for the HOPER program
For homebuyers to be eligible for the HOPER program, they will have to meet certain requirements.
Those looking to take advantage of the HOPER program will have to commit to installing solar panels on their new property within 90 days of closing. The property purchased can be single-family or multi-unit homes.
Those looking to purchase a condo are ineligible to take advantage of the HOPER program.
Completing an educational course before closing on your property as well as follow up surveys will be mandatory for the HOPER program.
The HOPER program does not require individuals purchasing a home to be first-time homebuyers or for them to meet income limits.
Homebuyers in all states can get funds from the HOPER program, except those looking to buy homes in North Dakota, South Dakota, Vermont, Alaska or Hawaii.
How can homeowners use funds from the HOPER program?
Funds from the HOPER program can be used to help make housing more affordable. Homebuyers can put their HOPER program funds toward closing costs on their home or for buying down their interest rate.
Closing costs cover the fees associated with originating and funding your loan as well as documenting your home purchase. Homeowners can expect to pay anywhere from 2% to 6% of their home’s purchase price in closing costs. Buying down your interest rate means paying a percentage of your loan amount upfront for a reduction in the rate your mortgage will have, also known as mortgage discount points. The exact amount your mortgage discount point will reduce your rate by can vary depending on your lender but typically reduces your interest rate by as least 0.125%.
HOPER program funds can ease the financial strain you may feel when paying closing costs on your home. They can also be put toward purchasing a lower interest rate for the life of your mortgage.
Can the HOPER program be combined with the FHA Solar and Wind Program?
Yes, you can combine the HOPER program with the FHA Solar and Wind Program.
When combining the HOPER program with the FHA Solar and Wind Program, homebuyers are able to access up to $13,000 through the HOPER program while rolling the cost of their solar panel system into their FHA loan through the FHA Solar and Wind Program.
FHA guidelines for solar panels
Homebuyers looking to take advantage of the FHA Solar and Wind Program will need to meet the FHA’s guidelines for solar panels.
Some of the FHA’s guidelines for solar panels are:
- Solar panels must be owned, not leased
- The solar panels must be new and installed within 90 days of closing
- The financed amount for the system must not be more than 20% of the property’s total value
Are there any additional costs for the HOPER and FHA Solar and Wind programs?
The only cost homebuyers looking at the HOPER and FHA Solar and Wind programs need to consider is the price of their educational course.
The course costs are the only out-of-pocket charge homeowners will have to make. The pre-closing course will cost you $149 and the post-purchase mentorship program will cost you $100.
Can these programs be used for home purchase or refinance?
The HOPER program can only be used for home purchases, not a refinance. The FHA Solar and Wind program will allow you to finance the cost of solar panels for both purchases and refinances.
Are there changes to my monthly mortgage payment with solar panels?
Unless you choose to finance their cost through your mortgage, solar panels tend not to raise your monthly mortgage payments, but they may reduce your utility bills.
Homeowners who make certain green or energy efficient home upgrades could see a reduction in their gas, water or electricity bills. Depending on which energy efficient upgrades you make to your home, you may even qualify for tax credits. Talk with a trusted tax expert to learn if any upgrades could qualify.
How can I start the FHA mortgage process today?
You can start the FHA mortgage process today by completing an online home loan application with a trusted lender.
Online home loan applications let you start the homebuying process without having to step outside. Online applications will connect you with a professional Loan Officer who can walk you through the FHA mortgage process and explain the terms of your loan to you.
Start your FHA mortgage today by beginning an online home loan application.
*Rate does not provide tax advice. The consumer should always consult a tax advisor for information regarding the deductibility of interest and other charges in their particular situation.
This is a brokered product and is not offered by Rate.
Qualified borrowers may receive 3.5% of their loan amount up to $13,000 for a home at which they will purchase and install solar panels within 90 days of closing. Assistance is provided as taxable income deposited into an H4H Hope for Homeownership Savings Club Account for the purchase or rate and term refinance of an eligible property. Borrowers must pay for and complete two designated home buyer education courses and are required to participate in ongoing credit and bank account monitoring as well as routine surveys post the closing of their loan. Minimum FICO score requirements apply. Not available in all states. Talk to your loan officer for more information about how your maximum loan amount is determined. Applicants are subject to credit and underwriting approval. Additional restrictions apply.
Rate is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.
