2024, when the credit is scheduled to expire. Unfortunately, a large amount of other federal energy efficiency credits expired in 2016, tax credits for residential energy efficiency and those for builders of energy efficient homes were extended retroactively, through December 31, 2021. Check out energystar.gov/ about/federal_tax_credits for the latest updates regarding tax credits. Do not give up on being eco-friendly: there are still many state and local tax credits, incentives, and rebate offers for upgrading your home’s energy efficiency. Let’s briefly review some of the different special requirements for various loan programs. Conventional Loan Program A conventional loan is a type of mortgage that is not insured or guaranteed by any government entity, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the Department of Agriculture (USDA). Conventional loans are instead offered and serviced by private lenders such as banks, credit unions, and mortgage companies. Conventional loans are popular because they often offer competitive interest rates and flexible terms, making them a viable option for many homebuyers. FHA Loan Program The Federal Housing Administration (FHA) is a U.S. agency that offers mortgage insurance to lenders. The purpose of FHA loans is to give people with low-to-moderate income the ability to get a home with little-to-no down payment. Normally, banks would reject these borrowers due to the high risks involved, but the FHA “backs” the loan, which helps lenders feel more comfortable that the institution is not taking on too much risk.
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