Solar financed via PACE program

[robertwells]

Hi, I have an FHA refinance assignment on an SFR that includes solar panels (added in 2023) purchased through the PACE program...Borrower mentions refi will payoff loan ("somewhat")...Just curious if people here would consider contributory value of panels in this scenario(?) Thanks!

 

[glenn walker]

100% yes .

 

[RSW]

Read the 4000.1 section about solar panels. There is your answer.

 

[J Grant]

As of the effective date, the solar panels are financed. So if the lender guideline is no contributory value of solar panels if fhey ares financed, then the fact that later at closing PACE makes owner pay the lien off is not in effect yet ( IMO)

 

[robertwells]

Read the 4000.1 section about solar panels. There is your answer.

Would you happen to know where in the document valuation of solar panels is located(?) I do not see a dedicated solar section, but do see some referencing in 203k projects or in new, but not existing residences with panels purchased with solar loan...Thanks!

 

[robertwells]

Would you happen to know where in the document valuation of solar panels is located(?) I do not see a dedicated solar section, but do see some referencing in 203k projects or in new, but not existing residences with panels purchased with solar loan...Thanks!

I am realizing I should have posted this in the FHA forum, but for anyone that has an interest, I did reach out to and hear back from the Resource center on my question and they noted if solar panels are financed they must be excluded from the valuation. However, if they are planning on paying off the solar system at closing (and providing a solar system has market acceptance), you could give value to the solar system and complete the appraisal subject to it being paid off. The Mortgagee must document the file accordingly to clear this condition.

 

[ZZGAMAZZ]

A few months ago, Ale Brewer posted a very succinct summary of appraisal guidelines based upon various factors.