With the popularity of electric cars and solar panels increasing, it’s important to point out that having solar panels on your house may impact your ability to get a mortgage. Many times, buying solar panels will be financed, and that is what they have an impact on your ability to purchase or refinance a mortgage.
If solar panels have been paid for in cash then that doesn’t impact your ability to finance the purchase or refinance of the property.
If you are buying a house with solar panels that have been financed and you’ll take over the loan, or if you own a house and plan to finance solar panels and then want to refinance, you should ask what the requirements for solar panels are to get a mortgage?
Solar panels financed with a PACE loan are not eligible for a mortgage at all. The mortgage lender needs to determine financing structure to maintain first lien position. If a UCC fixture filing is senior to the mortgage loan, it must be subordinated.
Mortgage guidelines have the ability to change at any time, so always talk to a well-reviewed mortgage loan officer to make sure you understand the current guidelines and how they might apply to you.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
