If you are a first-time homebuyer, the number that matters most is not just the mortgage payment. It is what you pay every month to live in the home. That is why so many buyers ask me about MAXPower 5 monthly costs. Let’s walk through it in plain language, using the program’s own illustration, so you can see how standard FHA and FHA + MAXPower 5 compare.
This post spotlights Alabama buyers in places like Birmingham, Mobile and Huntsville, but MAXPower 5 is available for eligible properties in all six states where I am licensed: Louisiana, Texas, Mississippi, Alabama, Florida and Georgia.
Why MAXPower 5 Monthly Costs Look at the Whole Picture
Most first-time buyers budget for principal, interest, taxes, insurance and mortgage insurance. Then the first summer electric bill shows up. Electricity is often a homeowner’s second-largest monthly expense after the mortgage, and US electricity prices have risen nearly 3% per year over the past 25 years.
Looking at MAXPower 5 monthly costs means looking at your mortgage and your electric bill together. That combined number is a more honest picture of what homeownership really costs you each month.
What MAXPower 5 Is (and Is Not)
MAXPower 5 (MP5) is a social innovation research program that combines FHA financing, financial education, mentorship, potential earned income and a homeowner-owned financed solar system. It is administered by Attainable Housing Advocates (The AHA Group) and offered exclusively through Max Mortgage, LLC.
MAXPower 5 is not a down payment assistance program, and it is not a grant. It has four parts: education, earnings, solar and follow-through. The solar part is what drives MAXPower 5 monthly costs in the comparison below.
MAXPower 5 Monthly Costs: Standard FHA vs FHA + MP5
Here is the illustration from the MAXPower 5 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 |
Illustration only, not a loan quote or savings estimate. Solar financing may increase the mortgage payment; actual utility costs and savings vary.
Notice what happens. In this illustration the mortgage goes up because the solar system is financed into the loan. The electric bill goes down because the home produces some of its own power. The combined MAXPower 5 monthly costs land in about the same place as standard FHA. The program calls this a potential near-net-zero impact to combined expenses.
The difference is what you own at the end of it. With standard FHA, that $300 goes to the utility company. With FHA + MP5, part of your payment goes toward a solar system you own.
How the Solar Side Works
MAXPower 5 uses the FHA Solar and Wind Technology policy. You can read more about FHA programs at HUD.gov. Under that policy:
- The home and solar are combined, allowing up to 120% loan-to-value (LTV).
- 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.
- It is ownership, not a solar lease, and owned solar can appraise into resale value.
Your real MAXPower 5 monthly costs depend on the property. Before anything moves forward we review roof condition and property suitability, system cost, energy output and warranties, your utility rates, insurance and tax considerations, and FHA mortgage limits and loan requirements. Installation costs, financing and actual savings vary from home to home.
The Potential 5% and Your Cash to Close
Monthly cost is one side. Upfront cost is the other. Through MAXPower 5, you may qualify to earn a potential 5% of the purchase price, capped at $16,000. It is not guaranteed, and program approval determines timing, use and eligibility.
Illustration only, not a loan quote: a $200,000 home could mean a potential $10,000, a $250,000 home a potential $12,500, and $320,000 or more reaches the $16,000 cap.
If approved, possible uses may include your down payment, eligible closing costs, an interest rate buydown, paying off other liabilities, or rebuilding reserves. Because the funds can serve several purposes, MAXPower 5 is not a down payment assistance program. It is also not automatic cash to close. FHA funds-to-close rules still apply, and you must still show 3.5% of your own funds available (gift funds allowed).
An approved rate buydown is one way the potential earnings could connect back to MAXPower 5 monthly costs, subject to program approval and lender rules.
Participation Costs to Budget For
To keep your view of MAXPower 5 monthly costs honest, include the program’s participation commitments:
- Before closing: financial education, about 4 to 6 hours, $149.
- After closing: mentorship, about 9 hours, $99.
- After closing: two surveys per year for five years.
Do You Qualify? A Quick Checklist
- Minimum credit score of 640.
- 3.5% of your own funds available, even if not needed at closing. 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.
- Ability to meet FHA lending standards.
- Condominiums are not eligible.
Occupancy and home type must qualify, FHA solar calculations and loan limits apply, and all program and lender criteria must be verified. You can learn more on our MAXPower 5 program page.
How We Compare MAXPower 5 Monthly Costs for Your Home
Whether you are buying in Alabama or any of the other five states, the process is the same:
- Connect. We talk about your goals.
- Explore. A personalized review of your FHA and MP5 eligibility.
- Verify. We review the home, solar feasibility, program rules and documents.
- Compare. Side by side: monthly costs, cash to close, timing and responsibilities.
That last step is where your real MAXPower 5 monthly costs replace the illustration. No one-size-fits-all promises. Your individual loan and program review comes first.
MAXPower 5 Monthly Costs FAQ
Will MAXPower 5 lower my monthly costs?
It may or may not. In the program illustration the combined MAXPower 5 monthly costs match standard FHA. Solar financing may increase your mortgage payment, and actual utility costs and savings vary.
Is this 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. Earnings are not automatic cash to close.
How much can I earn?
Potentially 5% of the price, up to $16,000, if approved. It is not guaranteed.
Do I still need money?
Yes. You must show 3.5% of your own funds. Gifts are allowed.
Do I own the solar?
Yes. It is owned free and clear, with no lease and no second lien.
Can I buy a condo?
No, condos are not eligible.
Which states?
Louisiana, Texas, Mississippi, Alabama, Florida and Georgia.
Ask About Your Eligibility
Want to see your own MAXPower 5 monthly costs next to standard FHA? Request a program review or schedule a homebuyer consultation.
Charles Parharm, Mortgage Loan Advisor, Max Mortgage, LLC
504-584-8999 | charles@callthemax.com | www.maxxla.com/mp5
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
