The FHA will lend on a solar home; however, realtors should know that only owned solar influences the value of the home. Leased solar does not affect the appraised value of the home, per the FHA handbook. Leased solar is also not eligible for an FHA home improvement loan.

Fannie Mae will not fund a home if the solar panels were purchased under the Property Assessed Clean Energy (PACE) program.

The answer to this question depends If the solar is leased (i.e., monthly leased solar panels, prepaid solar, etc.), this adds no appraised value to the home, per Fannie Mae guidelines. However, if the solar system is owned, it will almost definitely add value to the home. Sellers need to know, however, that most appraisers do not have adequate knowledge or experience in assessing the value of solar homes, so sellers and realtors should make sure to find qualified professionals who know solar.

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