Freddie Mac Leased Solar Panels

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.

Freddie mac leased solar panels.

The owner of the panels i e. If there is a lease for the panels all pertinent documentation must be reviewed to make sure these is nothing that can impair freddie mac s first lien position per 22 3 of the guide. This is because the property won t be considered livable if your solar panels fail and there s no electricity. As previously mentioned leasing a solar panel system means the homeowner.

Solar panels are an eligible improvement for greenchoice mortgages. Freddie mac believes that reducing home utility costs places families in a better financial situation and helps preserve home affordability over time. To learn more start with our requirements for properties with solar panels in guide section 5601 2. Properties with solar panels.

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. This part describes the requirements a lender must satisfy to become a fannie mae approved seller and servicer of residential home mortgage loans. Solar panels properties with leased or borrower owned solar panels are eligible as long as all fhlmc requirements are met. 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.

Through our greenchoice mortgage offering we are committed to facilitate the financing of energy efficient home improvements and energy efficient homes helping more families attain and. Its guidelines are being updated to allow underwriters to exclude solar panel lease payments from applicants debt to income ratios. The new user friendly seller servicer guide will make it significantly easier for you and your team to find understand and share critical information. If the solar panels are leased from or owned by a third party under a power purchase agreement or other similar.

Solar should be counted towards the value of your home. Freddie mac purchases mortgages secured by properties with solar panels. Effective for mortgages with settlement dates on and after march 1 2017. 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.

But what if you don t own your solar panel system.