b'Donna MuratallaGenworth Mortgage InsuranceGot Solar?Questions to Ask When Underwriting a Home with Solar Powerolar power is gaining momentum inQuestions to Ask When Originating orDoes the home maintain access to the U.S., and were moving towardsUnderwriting a Home with Solar Power electrical utilities consistent with incorporating this cleaner, moreWhen your borrower is consideringcommunity standards? efficient source in many areas of our lives,purchasing or refinancing a home withThis answer must be yes in this case. including our homes.solar panels, there are some specific questions youll want to ask upfront.Is there a Property Assessed Solar energy technology has come aClean Energy (PACE) loan?long way in the last 100+ years: solar cellWhat is the ownership and debtIf the PACE loan is structured as a technology was first produced in the latefinancing structure of the solar panels? subordinate lien or unsecured loan, it 1800s, and solar panels as we know themIf the borrower owns, or will be the ownermay be GSE eligible.If the PACE loan is today were created in 1954.Solar powerof the solar panels (cash purchase; includednot expressly subordinate, it is ineligible. has been part of some amazing feats,in the purchase price; financed previouslyPACE loans dated prior to July 6, 2010, may including the first round-the-world solar- and now paid in full OR secured by thealso be eligible.Got to https://selling-guide.powered flight in 2016 and the constructionfirst mortgage) you will typically be ablefanniemae.com/Selling-Guide/Origination-of the largest solar-powered railway bridgeto verify via title and solar-related creditthru-Closing/Subpart-B5-Unique-Eligibility-in London, England.report debt.The solar panels may beUnderwriting-Considerations/Chapter-B5-included in the value. 3-Construction-and-Energy-Financing/ for The good news is solar power has becomemore information.more accessible to the average consumer,Are the panels leased and more homeowners are incorporatingor owned outright? Is the Solar Panel loan unsecured? solar panels into their homes.In the U.S.,You will want to obtain a copy of the PowerIf so, obtain the invoice to verify solar California is leading the pack with over onePurchase agreement or lease agreement.panels were installed at the subject million solar units installed in homes as ofIf youre looking at a property with leasedproperty site.2019.This number is growing, especiallypanels, the value of the panels may not be with California legislation requiring mostincluded in the appraised valuation.Check the Appraisers Requirements new construction homes, built JanuaryIn addition to the above questions, youll 2020 and onward, to incorporate solarFurther, if the panels are leased, youllwant to ascertain the appraiser has energy measures.Many states haveneed to determine the monthly paymentaccurate information about the ownership incorporated solar power into theiramount and incorporate that amountstructure of the solar panels to: legislation, as well.into the ratios unless the lease provides delivery of specific amount of energy at Review the complete contract and Whether youre originating or underwritinga fixed payment during a given periodcomment on the termsloans in California or other states withand has a production guarantee that a strong solar power presence, therecompensates the borrower on a prorated Be familiar with energy reports and are some questions to consider whenbasis in the event the solar panels fail toratings and include the information in gathering data during the processing ofmeet energy output required during thethe reportthe file. lease period. continued on page 25Page 24 Spring 2021'