Solar panels and refinancing

Solar panels and refinancing.

It is a problem if you have solar panels if you want to refinance or sell your house?

The answer is that it depends on which type of program you participated in and if you financed them.  When you finance them, there is a lien put on the property.  It can be subordinated to the new first mortgage and most of the solar companies have no problem subordinating.

If you participated in one of the HERO or PACE programs, which means that you are paying it back through the property taxes, you will not be eligible for a conventional loan unless it is paid off through the refinance.  The reason being, that property taxes take precedence over a first mortgage and Fannie Mae and Freddie Mac won’t take second lien position, in the case of a a default.  Currently as of the writing of this, FHA and VA is the only options.

Contact me today if you have any questions about refinancing!

661-310-8536

By Colleen Craig, Socalmtgpro, The Mortgage Ninja

 

 

 

 

 

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