If I am buying a house with an FHA–insured mortgage, can I get PACE financing at the same time?

No.  Where the Mortgagee (lender) determines that the property will remain encumbered with a Property Assessed Clean Energy (PACE) obligation, the property is not eligible for FHA mortgage insurance. 

For FHA policy information see Handbook 4000.1, Section II.A.1.b.iv.(A)(6) available at:  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03413