HELOC On A Home With Solar Panels
Solar panels do not rule out a HELOC or home equity loan. Whether your panels are paid off, financed, leased or under a power purchase agreement, at least one of our programs has a path for it.
What we check on a solar home
The answer depends on who owns your panels and what shows on your title.
- If your panels show on the appraisal but no UCC filing shows on title, at least one program needs no extra documents about them.
- For leased panels, we need a copy of the lease or power purchase agreement.
- A power purchase agreement payment based only on energy produced may be left out of your debt-to-income ratio in at least one program.
- Solar lease payments are counted in your debt-to-income ratio.
- A UCC filing that names only the solar equipment as collateral may remain on title in at least one program.
- PACE or HERO financing must be paid in full prior to or at closing.
Owned panels can add value
Leased panels can qualify
Some solar loans can stay
Energy-based payments may be excluded
Simple when title is clear
HELOC or home equity loan
How Solar Affects A HELOC
Most solar setups fall into one of a few types, and each one is handled differently.
If you paid cash for your panels or your solar loan is paid off, you own them. Fannie Mae applies its standard requirements in that case, and at least one HELOC we offer follows Fannie Mae guidelines for solar panels. If the panels show on the appraisal but no UCC filing shows on title, at least one program needs no extra documents about them.
If you still owe on a solar loan, the monthly payment counts in your debt-to-income ratio. When the solar lender recorded a UCC fixture filing, at least one program requires that filing to be subordinated or terminated, and the appraiser may count the panels in your home’s value. When the solar loan shows as a financing statement on title instead, the appraiser may not count the panels, and a title supplement confirms our lien position.
If a solar company owns the panels under a lease or power purchase agreement, we review a copy of that agreement. The panels cannot be counted in your appraised value, and your home must keep access to another source of electric power that meets local community standards. The owner of the panels cannot be named as a loss payee on your homeowners insurance.
Why choose Saxton for a HELOC on a solar home
This page is for homeowners with solar panels who want a HELOC or home equity loan.
We Read The Agreement First
Solar setups vary, so we start with your lease, power purchase agreement or solar loan papers. At least one of our programs accepts solar panels subject to a review of that agreement.
Many Programs To Compare
Rules differ between programs. One may require a solar panel lien to be paid off, while at least one other lets a solar lien stay in place. We match your setup to the program that fits it.
Your Solar Loan Can Stay
You may not need to pay off your solar loan to get a HELOC. At least one program exempts solar liens from its rule that other junior liens be paid off at or before closing.
A First Lien HELOC Route
A HELOC in first lien position is another option. At least one first lien HELOC accepts UCC filings that are limited to personal property.
PACE Payoff At Closing
PACE and HERO financing must be paid in full. At least one program allows that payoff prior to or at closing.
We Flag Power Rules Early
At least one program treats a home with solar as its only source of electricity as ineligible. Leased panels also require access to an alternate power source, and we tell you up front if that affects you.
Hear From Homeowners Like You
Frequently Asked Questions
Quick answers about solar panels and borrowing against your home.
Yes. At least one HELOC we offer allows solar panels and solar panel agreements when Fannie Mae guidelines are followed. What we need depends on whether you own, finance or lease the panels.
Not always. At least one program lets solar liens remain while other junior liens are paid off. Other programs require solar panel liens to be paid off, so we compare options for you.
Yes. A solar lease payment is counted in your debt-to-income ratio. A power purchase agreement payment based only on energy produced may be left out in at least one program.
It is a recorded notice of a claim on the panels. Leasing companies often file one to put others on notice that they own the equipment. At least one program lets that filing stay on title when it names only the solar equipment.
Yes, if the PACE loan is paid off. At least one program requires existing PACE or HERO financing to be paid in full prior to or at closing.
It depends on who owns them. Leased panels and panels under a power purchase agreement cannot be counted in the appraised value. For purchased panels with a UCC fixture filing, the appraiser may count them in at least one program.
It may not qualify. At least one program lists properties with solar power as the only source of electricity as ineligible, and leased panels require access to an alternate source of electric power. Tell us about your setup and we will check.
Saxton Mortgage does. At least one HELOC we offer allows solar panels and solar panel agreements when Fannie Mae guidelines are followed. What we need depends on whether you own, finance or lease the panels.
Find out what you qualify for
Tell us how your solar panels are owned or financed, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.