The Energy-Smart DPA program, available with Federal Housing Administration (FHA) financing, helps homebuyers fund energy-efficient upgrades while removing the hurdle of a down payment. The nationwide program offers a market-rate first mortgage paired with a forgivable second or DPA grant, with no AMI or geographic restrictions.
The program claims to offer lower fees than many traditional DPA and solar financing options and can be white-labeled for lenders.
“For years, the challenge has been finding a way to integrate energy-efficient upgrades into home financing in a way that works for both homebuyers and lenders,” said Cole Bestgen, CEO of Arcasa. “Arcasa’s deep expertise in both the solar and mortgage industries has allowed us to design a practical solution that lenders can deliver at scale while providing meaningful upfront and life-of-loan savings to borrowers.”
Solar installation — required as part of the financing package — occurs after closing and doesn’t delay the loan, a press release confirmed. Arcasa partners with local installers to manage the upgrades, allowing buyers to sidestep high commissions and extra financing costs typical of post-purchase solar projects.
Buyers may also be eligible for a 30% federal tax credit, subject to qualification, and monthly utility bill savings after installation is complete, Arcasa says.
“The combination of broad program eligibility and attractive financial incentives makes Arcasa’s Energy-Smart DPA program a compelling option for today’s homebuyers, who are actively seeking creative ways to make homeownership more affordable,” said Rob Chrane, founder and CEO of Down Payment Resource. “It’s also a smart way for lenders to unlock more transactions in a market where every transaction counts.”