FHA Refi - Appraisal Include Solar Or Not?

[Cob]

Per FHA and Fannie Mae, the solar panels MUST be OWNED by the home owner and not leased or they should not be incorporated into the assessment of the home, I am surprised more people on here did not know this.

http://news.energysage.com/fannie-mae-solar-financing-owning-vs-leasing/

SORRY, just realized that others on here were aware they must be owned.

 

[Tim Hicks (Texas)]

Nobody has mentioned the negative effect of solar panels as they are an eyesore, can damage the existing roof and make roof replacement a more expensive job. There are savings on one end, but losses in other areas.

 

[jay trotta]

Rick, Agreed, it would appear a; Lender / FNMA / FHA have been burned by the Lease system before and the bigger Question may be, what the negative environmental impact may be; (IE: buried oil tanks) Leased Land, who lends on those.

In another thread, there was a taking by a Lender on a give back, $500k to the City on a Sale of the property.........a huge whole to climb out of. The advantage of Solar to reclaim electric is only half of the process; one always needs to considered the collateral damage (The Cost of Roof Repair in any form). That Cost alone may outweigh the savings in the long run.
An informed Investor (of any type) should explore the Advantages or Disadvantages "prior to" the go for it period. IG Pools are a good example, Cost usually does not equal Value and on occasion it generates a fantastic return. It Depends*

 

[hendappr]

You can calculate the contributory income value from the Sandia National Laboratories website and print out the results to add as support in your appraisal for the adjustment.

 

[PushinValue]

I encountered this exact issue with a FHA appraisal that I completed.

The criteria is - this is a FHA loan - and the solar system is leased. Here is what FHA says about it;

View attachment 31946
Here is the link to this information, which is found on page 454 of this document; https://portal.HUD.gov/hudportal/documents/huddoc?id=40001HSGH.pdf

I had done a very in depth appraisal, which included market extraction of solar systems. The lender notified me that leased systems cannot be considered in a FHA loan. I redid the appraisal.

It appears that the appraiser in the original post of this thread was correct in not allowing any value.

Leased Andrew owned w financing is different...