FHA Hoper Loan Guide: Affordable Homeownership Options

At Amy DeBusk Home Loans, we are committed to combining financial assistance with sustainable living through the FHA HOPER Loan Program. This innovative program allows you to purchase or refinance a home while integrating a fully owned solar energy system into your FHA loan.

The HOPER Loan Program (Home Ownership, Promotion, Education, & Research) is designed to make homeownership more accessible while promoting renewable energy. Key features of this program include:

• Up to $13,000 in financial assistance for down payments and closing costs.
• Financing for a fully owned solar energy system eliminating the need for separate or high-interest solar loans.
• Eligibility for the Federal Solar Investment Tax Credit (ITC), which covers 30% of the solar system cost, providing substantial savings.

Whether you’re a first-time homebuyer or looking to refinance, the FHA HOPER Loan Program offers a path to energy-efficient, affordable homeownership.

Financial Assistance:Borrow up to $13,000 to cover:

• Down payment
• Closing costs
• Interest rate buy-downs
• Debt repayment to qualify for the loan
• Savings replenishment for reserves

Solar Panel Financing: The cost of the solar system is seamlessly added to your FHA loan amount, allowing you to own the system outright without the complications of leasing.

Tax Credits: Homeowners used to be able to claim the Federal Solar Investment Tax Credit (ITC), offering a 30% tax credit on the solar system cost. Typical savings average $12,000 in tax benefits.  In 2026 this was discontinued. 

Energy Savings: Solar panels help reduce utility costs, increase home value, and support environmental sustainability.

Simplified Process: FHA guidelines streamline the loan process without the need for energy assessments or additional calculations.

Property Type:

• Eligible: Single-family homes or manufactured housing (one unit)
• Ineligible: Condominiums and properties where solar installation is not feasible

Solar System Requirements:

• Solar panels must be installed by certified professionals and meet local building codes.
• Systems must provide renewable electricity to the home and be fully owned by the borrower (no leases or power purchase agreements).

Loan Types: Available for purchase transactions, rate-and-term refinances, and simple refinances.

Education Requirements:

• Complete a 6-8 hour pre-closing education course ($149).
• Participate in a post-closing financial mentorship program ($99.99).

States Where the FHA HOPER Loan is Available

The FHA HOPER Loan Program is offered in many states, though certain states are excluded due to local regulations or feasibility concerns. Current availability includes:

• California
• Nevada
• Texas
• Florida
• Arizona
• Idaho
• Colorado
• Utah
• Illinois

How Does the FHA HOPER Loan Work?

Step 1: Eligibility Check

• Property must be a single-family home or manufactured housing (one unit).
• Solar systems must meet local building codes and be installed by certified professionals.
• Borrowers must own (not lease) the solar panels.

Step 2: Loan Calculation

• Base Loan Amount: 96.5% of the appraised value or purchase price.
• Solar Add-On: The lesser of the total solar system cost or 20% of the property’s appraised value.

Step 3: Escrow for InstallationIf the solar installation isn’t complete by closing, funds are held in escrow until the system is installed. Unused escrow funds will be applied to your mortgage balance.

Step 4: Tax BenefitsAfter installation, homeowners in the past could claim the Federal Solar Tax Credit (ITC) to reduce their tax liability.  This may or may not be available.

Step 5: Inspection and FinalizationLocal authorities will inspect the solar system to ensure compliance with building codes and safety standards.

Take the Next Step

Ready to combine homeownership with solar energy savings? Contact Amy DeBusk Home Loans today to explore how the FHA HOPER Loan Program can work for you. Whether you’re buying your first home or refinancing, we’ll guide you every step of the way.

Contact Information:

• Phone: (916) 705-2557
• Email: adebusk@loandepot.com

1. How is the solar system financed in the FHA HOPER Loan?
The solar system cost is added to your FHA loan amount as an “add-on” to the base loan. This ensures that the system is financed seamlessly as part of your mortgage, with no need for a separate solar loan.

2. Is there a limit on the solar system cost that can be financed?
Yes. The solar system cost must be the lesser of the total installation cost or 20% of the appraised property value.

3. Do I need a home energy assessment to qualify for this program?
No. The FHA HOPER Loan does not require a home energy assessment or proof that the solar system will pay for itself through energy savings.

4. What happens if the solar system isn’t installed by closing?
If installation isn’t complete, funds will be held in escrow until the system is installed. Any remaining funds after installation must be applied to reduce the mortgage principal.

5. Are leased solar panels eligible?
No. Borrowers must own the solar system outright. Leased systems or Power Purchase Agreements (PPAs) are not allowed under the FHA HOPER Loan Program.

6. Can I refinance my home with this program?
Yes, the FHA HOPER Loan is available for purchase transactions as well as rate and term refinances and simple refinances. Refinancing into this program allows homeowners to add solar energy financing to their FHA loan.

7. What is the timeline for solar system installation?
Solar panels must be installed within 120 days of closing. If the system is not completed within this timeframe, the remaining escrow funds will be applied as a prepayment toward the mortgage balance.

8. Do solar installations need to meet specific standards?
Yes. Solar panels must meet local building codes and be installed by certified professionals. This ensures safety and compliance.

9. Are there additional tax benefits for the solar system?
Not in 2026, there used to be tax credits and they may return. The Federal Solar Investment Tax Credit (ITC) for the solar system cost. Learn more on the IRS Solar Tax Credit webpage.

https://www.irs.gov/credits-deductions/residential-clean-energy-credit

Switching to solar energy isn’t just about helping the environment—it’s also a smart financial decision that can save California homeowners thousands of dollars. With abundant sunshine, California is one of the best states for solar power, offering opportunities to reduce energy costs, increase home value, and contribute to a sustainable future.

California homeowners face some of the highest electricity rates in the nation, with the average residential electricity rate at 22.85 cents per kWh (compared to the national average of 14.96 cents per kWh). Solar energy offers an opportunity to lower these costs and protect yourself from future rate hikes.

 Key Benefits of Solar Energy

• On average, California homeowners save $1,500 to $2,000 annually by switching to solar.
• Monthly savings range between $125 to $175, depending on your energy usage and solar system size.

• Homeowners can claim the Federal Solar Investment Tax Credit (ITC), which provides a 30% tax credit on the cost of a solar energy system.
  • Example: For a system costing $30,000, the tax credit amounts to $9,000.
• California also offers Net Energy Metering (NEM), allowing homeowners to earn credits for excess energy their solar panels produce, further reducing electricity bills.

• Homes with solar panels sell for 4.1% more than comparable homes without solar.
• Solar installations can add an average of $15,000–$20,000 to a home’s resale value in California.

• Reduce your carbon footprint by offsetting approximately 3 to 4 tons of CO2 emissions per year.
• Contribute to a cleaner, greener planet by using renewable energy instead of fossil fuels.

• Protect yourself from rising energy costs and power outages with solar energy and optional battery storage systems.

     How Much Can You Save with Solar in California?

            Key Statistics

• California has over 1.5 million solar installations, more than any other state.
• Solar panels generate an average of 5.5 hours of usable electricity per day in California.
• The average cost to install solar in California is approximately $15,000–$25,000 after federal incentives.

     Why Now is the Best Time to Go Solar

1. Lock in Savings: Utility rates in California are expected to increase by 4–6% annually. Solar energy offers price stability and protection from rising costs.
2. Sustainability Goals: California has ambitious renewable energy targets, aiming for 100% clean energy by 2045. By going solar, you’ll be part of the movement toward a sustainable future.