Does Freddie Mac Allow 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.

Does freddie mac allow solar panels. Properties with solar panels. Its guidelines are being updated to allow underwriters to exclude solar panel lease payments from applicants debt to income ratios. Freddie mac does not have site size or acreage limitations. I properties with solar panels owned by the borrower if the borrower owns the solar panels on the property.

Appraisal requirements re use of appraisal solar panels properties with leased or borrower owned solar panels are eligible as long as all fhlmc requirements are met. 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. With regard to solar the important point to take away from fannie mae s guide is this. However when a property consists of a large acreage parcel s and is in a location where commercial farms or ranches are typical the seller needs to perform additional analysis of the property characteristics to make sure the property is residential.

Solar panels get special treatment 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. To learn more start with our requirements for properties with solar panels in guide section 5601 2. 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. This is because the property won t be considered livable if your solar panels fail and there s no electricity.

If you own the solar panels on the roof of your home you only need to meet the standard eligibility requirements in order for fannie mae to purchase or securitize a mortgage on your property the same requirements that would apply even if you had no solar system. Freddie mac believes that reducing home utility costs places families in a better financial situation and helps preserve home affordability over time. Solar panels are an eligible improvement for greenchoice mortgages. Effective for mortgages with settlement dates on and after march 1 2017.

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