Fannie Mae Updates Guidelines on Properties with Solar Panels

Recently, Fannie Mae updated its guidelines on properties with solar panels. Under the updated guidelines, a property with financed solar panels cannot contribute to the appraised value of the property.
If the solar panels are leased, they cannot be given value as part of the appraisal.
If the solar panels are purchased, they must be owned free and clear and cannot be encumbered, in order to be given value as part of the appraisal.
As a lender, we are responsible for ensuring the appraiser has accurate information about the ownership structure of the solar panels and that the appraisal appropriately addresses any impact on the property’s value. As a reminder, any HERO or PACE loans need to be paid in full before the property is eligible for financing.

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