Solar Options

Detailed Checklists

Solar Panels Leased or Covered by a Solar Power Purchase (PPA)

Financed Solar Panels (As a Fixture to Real Estate)

Financed Solar Panels (As Personal Property)

Owned Free & Clear

Solar FAQ

Follow Agency and Government guidelines. I’ve gotten mixed messages on VA loans. Technically solar is considered a utility bill and VA & FHA both indicate that utility bills shouldn’t be calculated in the DTI.

  • The contract will have a TIL disclosure
  • The contract will say “you don’t have the option of purchasing the system”. This means it’s not financed
  • If it’s on the credit report, more than likely it’s financed, but double check with the contract. Also, if there’s a second lien on the home and being reported on title and credit, it could mean that the client pulled financing from a lender, i.e. Credit Union, in order to purchase SOLAR.

Once we find out that the property has solar, the immediate next step is to get the solar contract.  This will tell us if the solar is financed or if it’s being leased (not owned by client).
If it’s being leased, and not owned by the client, then it’s an easy temporary removal of the UCC. Can’t subordinate something that’s not owned.

  • Tesla has a website where we can request the contract, UCC Termination and Fannie Mae addendum form that I find extremely helpful and therefore don’t use Title as a middle man.
  • Other companies have processes in place where we can request the contract directly from them.  It only takes a call to the solar company to find out
  • Request from the client or pull from the previous file
  • Request from title
  • Directly from the client (rare)
  • They are recurring clients and I have a good memory
  • On the credit report.  Many times when the solar is financed, it will show on the credit.  For example Mosaic Solar.  Huge red flag that property has solar
    • Many times the solar shows up as a mortgage.  If the lien isn’t attached to the property, we order a credit supplement to correct the type of liability to installment
  • From the title report.  The UCC/lien will show most of the times on Schedule B. It’s a hit and miss whether the title company actually points it out and therefore imperative that Operation staff review pre-lims.
  • From the appraisal report.  Does appraiser note if it’s outright owned, leased, or financed?

Solar Companies Contact Information