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Solar Panel Leases

Did you know that properties with Solar Leases or Solar Power Purchase Agreements may be eligible for financing? 

The following items are required when a solar lease is present:

Conventional Loans:

A complete copy of the solar lease must be obtained for review to confirm the term meets agency requirements and the following:

  • Repayment terms must be considered in the borrower's DTI, unless payments are under a power purchase agreement which then will follow agency guidance. 
  • The lease must be subordinate to all mortgage liens.
  • Any outstanding title exception must be addressed with insurance or removed.
  • We will REQUIRE completion of the Conventional Solar Lease Checklist.

FHA, VA and USDA Loans:

A complete copy of the solar lease must be obtained for review to confirm the term meets agency requirements and the following:

  • Any title commitment exceptions relating to the solar panels must comply with Title Exceptions and Impediments topic or be removed.
  • The solar lease cannot take 1st/superior lien position to the subject first mortgage.

On resale transactions where the seller's solar lease is being terminated to remove the exception from title, we must obtain, review and approve the terms of the new buyer's solar lease agreement and qualify the lease repayment in DTI unless the new lease meets the power purchase agreement specifically required within the FHA/USDA/VA Solar Lease/Power Purchase Agreement Checklist.

For full guidelines, see Wholesale Underwriting Guides (Appraiser, Appraisal and Property/ Appraisal, Inspection & Property/Solar Panels, Solar Leases, Power Purchase Agreement)

  • Conventional Solar Panels, Solar Leases, Power Purchase Agreements (PPAs)
  • Government Solar Panels, Solar Leases, Power Purchase Agreements (PPAs)