Buying your first home comes with a lot of new words, a lot of numbers, and a lot of advice from people who mean well. When MAXPower 5 homebuyers first hear about this program, the questions come fast. Is it a grant? Is it down payment assistance? Is there a catch?
This guide gives you plain answers. I will walk you through what MAXPower 5 is, what it is not, and how to tell whether it might fit your plans in Louisiana, Texas, Mississippi, Alabama, Florida or Georgia.
No one-size-fits-all promises. Your individual loan and program review comes first.
What MAXPower 5 Homebuyers Should Know First
MAXPower 5 is a social innovation research program. It combines FHA financing, financial education, mentorship, potential earned income, and a homeowner-owned financed solar system.
The program is administered by Attainable Housing Advocates, also known as The AHA Group, which studies financial education, savings and long-term homeowner outcomes. Max Mortgage, LLC offers MAXPower 5 exclusively. Our job is to help you compare a standard FHA loan with FHA plus MAXPower 5 and review your eligibility before you decide anything.
The program tagline says it well: More buying power. A brighter future. Still, the details matter, and MAXPower 5 homebuyers deserve the full picture before they get excited about any number.
What MAXPower 5 Is Not
This is the part people most often get wrong. MAXPower 5 is not a down payment assistance program, and it is not a grant.
Here is why. Eligible MAXPower 5 homebuyers may qualify to earn a potential 5% of the purchase price, capped at $16,000, subject to program approval. That potential earned income can be applied toward several things, and the down payment is only one of them. Because the funds can serve multiple purposes, the program is not a down payment assistance program.
It is also not automatic cash to close. FHA funds-to-close rules still apply, and program approval determines the timing, the use and the eligibility. The potential earned income is not guaranteed.
The Potential 5% and Its Possible Uses
If you are approved, the potential earned income may be used for things like:
- Your down payment
- Eligible closing costs
- An interest rate buydown through an approved mortgage buydown arrangement
- Paying off other liabilities or paying down debt
- Reserves, so you rebuild savings after closing
- Other permitted transaction expenses or approved uses
Every one of those uses is subject to program approval and lender rules.
Here is a simple illustration of how 5% of the purchase price works with the cap. Illustration only, not a loan quote.
- $200,000 purchase price: potential $10,000
- $250,000 purchase price: potential $12,500
- $320,000 or more: potential $16,000, which is the cap
Even with the potential earned income, MAXPower 5 homebuyers must still show 3.5% of their own funds available, even if those funds are not needed at closing. Gift funds are allowed.
The Four Parts of MAXPower 5
The program is built around four parts. Think of them as the four legs of a table. Each one supports the others.
- Education: complete financial education before closing.
- Earnings: explore potential earned income under program rules.
- Solar: review financing for an eligible solar installation.
- Follow-through: mentoring and follow-up surveys after closing.
For many MAXPower 5 homebuyers, the education piece turns out to be one of the most valuable parts. Understanding your budget, your credit and your long-term costs before you close can make owning a home feel a lot less stressful.
How the Solar Piece Works
The solar component uses the FHA Solar and Wind Technology policy, often called SWT. You can learn more about FHA programs directly from the U.S. Department of Housing and Urban Development.
Under this policy, the home and the solar system are combined, allowing up to 120% loan-to-value. There is no change to the appraisal or the down payment amount. The system is owned free and clear, with no UCC-1 filing and no second lien.
That matters. This is ownership, not a solar lease, and owned solar can appraise into resale value.
Why solar at all? U.S. electricity prices have risen nearly 3% per year over the past 25 years, which often makes electricity a homeowner’s second-largest expense after the mortgage. MAXPower 5 homebuyers get to look at the mortgage and the electric bill together, instead of one at a time.
Before any decision, we review roof condition and property suitability, system cost, energy output and warranties, utility rates, insurance and tax considerations, and FHA mortgage limits and loan requirements. Installation costs, financing and actual savings depend on the property.
A Side-by-Side Monthly Cost Illustration
Here is the illustration from the program materials. Illustration only, not a loan quote or savings estimate.
| Standard FHA | FHA + MP5 | |
|---|---|---|
| Mortgage | $2,000 | $2,200 |
| Electric bill | $300 | $100 |
| Combined | $2,300 | $2,300 |
Solar financing may increase the mortgage payment, and actual utility costs and savings vary. The point of this illustration is to show how MAXPower 5 homebuyers can compare combined housing and energy costs rather than looking at the mortgage payment alone.
Who May Qualify for MAXPower 5
Here is the basic checklist for MAXPower 5 homebuyers. All program and lender criteria must be verified.
- A minimum credit score of 640
- 3.5% of your own funds available (gift funds allowed)
- An FHA purchase or refinance scenario
- A property in Louisiana, Texas, Mississippi, Alabama, Florida or Georgia
- A property suitable for solar installation
- The ability to meet FHA lending standards
- Occupancy and home type that qualify (condominiums are not eligible)
FHA solar calculations and loan limits also apply. If you are not sure where you stand, that is completely fine. Sorting that out is exactly what a program review is for.
Participation Commitments and Fees
MAXPower 5 is a research program, so participation comes with a few commitments. MAXPower 5 homebuyers should plan for:
- Before closing: financial education of about 4 to 6 hours, with a $149 fee
- After closing: mentorship of about 9 hours, with a $99 fee
- After closing: two surveys per year for five years
Those surveys help the research team learn what actually supports long-term homeowner success.
Who MAXPower 5 Tends to Fit
The program is often a good conversation for:
- First-time homebuyers who want clear options and education
- Budget-minded FHA buyers weighing mortgage and energy costs together
- Buyers who want to compare standard FHA with MAXPower 5 before deciding
Plenty of MAXPower 5 homebuyers come in curious and leave with a clearer picture of their full budget, whether or not they move forward with the program. That is a good outcome too.
The Four-Step Process
- Connect: reach out to me to talk about your goals.
- Explore: get a personalized review of FHA and MAXPower 5 eligibility.
- Verify: we review the home, solar feasibility, program rules and documents.
- Compare: we look at monthly costs, cash to close, timing and responsibilities side by side.
You can learn more on our MAXPower 5 program page. For MAXPower 5 homebuyers, the Compare step is where everything comes together. You see both paths clearly, and you make the call.
MAXPower 5 Homebuyers FAQ
Is MAXPower 5 down payment assistance?
No. It is a research program. Potential earnings can be applied toward the down payment, but they can also be used for closing costs, a rate buydown, paying off other debts, or reserves, which is why it is not a down payment assistance program. Earnings are not automatic cash to close.
Can the 5% go toward my down payment?
It may, if you are approved. Down payment is one of several possible uses, subject to program approval and FHA funds-to-close rules. You still need to show 3.5% of your own funds (gifts allowed).
How much can I earn?
Potentially 5% of the purchase price, up to $16,000, if approved. It is not guaranteed.
What does it cost?
$149 before closing and $99 after closing.
Can MAXPower 5 homebuyers buy a condo?
No. Condominiums are not eligible.
What credit score do MAXPower 5 homebuyers need?
A 640 minimum credit score.
Do MAXPower 5 homebuyers still need their own money?
Yes. You must show 3.5% of your own funds available, and gift funds are allowed.
Do I own the solar system?
Yes. It is owned free and clear, with no lease and no second lien.
Which states can MAXPower 5 homebuyers buy in?
Louisiana, Texas, Mississippi, Alabama, Florida and Georgia.
Take the Next Step
If you are one of the many MAXPower 5 homebuyers wondering whether this program fits your plans, let’s talk. Ask about your eligibility, request a program review, or schedule a homebuyer consultation.
Charles Parharm, Mortgage Loan Advisor, Max Mortgage, LLC
Phone: 504-584-8999
Email: charles@callthemax.com
Web: www.maxxla.com/mp5
No one-size-fits-all promises. Your individual loan and program review comes first.
About the Author
Charles, Mortgage Loan Advisor with Max Mortgage, LLC. 20+ years in mortgage and real estate. NAMB Certified FHA Mortgage Professional.
MAXPower 5 is presented as a research program involving earned income, financial education, mentorship and solar financing. Program participation, any payments, permitted uses, fees and state availability are subject to written program terms and lender approval. FHA financing remains subject to underwriting, property eligibility, mortgage insurance, funds-to-close requirements and all applicable agency guidelines. This is for educational and marketing purposes only and is not a commitment to lend. All loans subject to approval. Equal Housing Opportunity. NMLS #1413036 | Company NMLS #1446745
