Solar Panels Do Not Have To Stop The Loan.
Panels are allowed on financed homes. How they were paid for is what decides the outcome.
The panels are fine. The paperwork behind them is the question.
Whether the system is owned, leased or financed changes the treatment.
- The presence of solar panels and solar panel agreements is allowed, following agency guidelines.
- Additional requirements apply where panels are leased rather than owned outright.
- Properties where solar panels carry a lien against the home are not eligible on some programs.
- A solar arrangement that results in a UCC filing against the real property is treated as a restriction.
- The solar agreement itself is reviewed as part of the file.
- Owned panels with no lien are the most straightforward situation.
Panels are allowed
Agency guidelines followed
Owned systems simplest
Leased systems need more review
Liens can disqualify
UCC filings are checked
What happens when a Saxton loan involves solar panels?
How a solar installation affects financing the property.
Solar has become common enough that most lenders see it weekly, and it still derails files regularly. The panels themselves are rarely the problem. The presence of solar panels and solar panel agreements is allowed, provided the file follows agency guidelines. What matters is how the system was paid for.
Owned outright with no financing attached is the simplest case. Where panels are leased, or financed through an arrangement that attaches to the property, additional requirements apply and the agreement gets reviewed as part of the loan file.
The situation that causes real trouble is a lien. Properties where solar panels carry a lien against the home are not eligible on some programs, and an arrangement that results in a UCC filing against the real property is treated as a restriction on title. That is not a paperwork nuisance, it is a question of what sits ahead of the mortgage. If you are buying or refinancing a home with panels, getting the solar agreement in front of us early is the single most useful thing you can do.
Why send Saxton the solar agreement early?
For buyers and owners whose property already has panels on the roof.
Owned Is Simplest
If the system is owned outright with nothing attached to the property, this is usually a non-event.
Leases Need Reviewing
Leased systems carry additional requirements. The lease terms matter, so we need to see the actual agreement.
Liens Are The Real Issue
A lien against the property for the panels can make a program ineligible outright. Finding that in week one is very different from finding it in week five.
UCC Filings Get Checked
An arrangement producing a UCC filing against the real property is treated as a restriction. It is a title question as much as a solar question.
We Will Read The Contract
Solar agreements are not standardized. Rather than guess from the installer name, we would rather read your document.
Refinancing Counts Too
The same considerations apply whether you are buying a home that has panels or refinancing one you already own.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying or refinancing a home with solar.
Generally no. The presence of solar panels and solar panel agreements is allowed following agency guidelines. The complication comes from how the system was financed.
Owned outright with nothing attached to the property is the simplest case. Leased systems carry additional requirements and the agreement is reviewed as part of the file.
Properties where solar panels carry a lien against the home are not eligible on some programs. This is the situation most likely to change which loan is available to you.
It is a filing that can attach to the property in connection with the solar equipment. Where it results in a filing against the real property it is treated as a restriction, which affects the loan.
Ask the seller for the solar agreement as early as you can and send it to us. It is the fastest way to know whether anything needs resolving before closing.
That is often the cleanest resolution when a lien is involved, but it has to be negotiated. Knowing early gives you room to ask.
Yes. The same considerations apply whether you are buying the home or refinancing one you already own with panels installed.
Find out what you qualify for
If there are panels on the roof, send us the solar agreement before anything else. It is the document that decides how simple this is.
Get Pre-Qualified*Eligibility for properties with solar installations is subject to program guidelines, title review, appraisal and credit approval. Additional requirements apply to leased or financed solar systems. Properties where solar panels carry a lien against the subject property may be ineligible under certain programs. Solar agreements are subject to review. Not all applicants or properties will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.