Low-Income Loan Program for Energy Conservation Improvements

This home improvement loan program, which was created under HUD Title 1 in 1978, is administered by the Virginia Housing Development Authority (VHDA).

The program exists to reduce energy consumption or reduce dependence on conventional energy sources by offering low-interest loans to low- and moderate-income homeowners for repairs to existing homes. All renewable energy technologies are eligible. The interest rate is 6.75%, and there is an additional annual Federal Housing Authority (FHA) insurance charge of 1% of the loan amount. Loan amounts range from $1,000 to $25,000 for terms of 5, 10, 15 or 20 years. (A lien on the property is required for all loan amounts.) Homeowners can borrow up to 100% of their homes' equity. The VHDA issues approximately 100 loans per year.