To learn more start with our requirements for properties with solar panels in guide section 5601 2.
Freddie mac leased solar panels.
But what if you don t own your solar panel system.
This is because the property won t be considered livable if your solar panels fail and there s no electricity.
Its guidelines are being updated to allow underwriters to exclude solar panel lease payments from applicants debt to income ratios.
The solar leasing company must have third party insurance to cover damage to the mortgaged property caused as a result of malfunction or faulty installation of the panels.
Solar should be counted towards the value of your home.
Starting in march 2017 freddie mac mortgage guidelines will be kinder to homes with solar panels whether owned by the borrower or leased from a third party.
Solar panels are an eligible improvement for greenchoice mortgages.
Properties with solar panels.
All the major mortgage investors including fannie mae freddie mac the fha and the va require the property to have an alternate source of electricity.
The owner of the panels i e.
Effective for mortgages with settlement dates on and after march 1 2017.
If the solar panels are leased from or owned by a third party under a power purchase agreement or other similar.
Freddie mac believes that reducing home utility costs places families in a better financial situation and helps preserve home affordability over time.
Homeowner interest in solar panel systems has grown in the past decade and we have begun to receive questions from sellers about the eligibility of mortgages secured by properties with solar panels.
The new user friendly seller servicer guide will make it significantly easier for you and your team to find understand and share critical information.
Properties with solar panels b2 3 04 if the property owner is the owner of the solar panels standard eligibility requirements apply for example appraisal insurance and title.
Freddie mac purchases mortgages secured by properties with solar panels.
