Jump to a section
It can affect the review, but the words “solar panels” do not identify the obligation. The lender needs the actual agreement and relevant property information before it can determine the treatment.
The document we needed first
After a family confirmed a solar power agreement, I asked what documentation the lender needed. The processor requested a copy of the agreement. The correspondence did not establish whether the terms were acceptable or what additional conditions applied.
Getting the contract was the useful next step. Guessing from a monthly payment or the appearance of the panels would not have answered the question.
Identify the arrangement
Determine whether the system is owned outright, financed, leased or covered by a power purchase agreement. Also identify any recorded financing or assessment tied to the property. These arrangements can have different implications for payments, title and the appraisal.
Fannie Mae’s property guidance distinguishes solar ownership and financing structures. It also addresses PACE financing separately. Those conventional rules are not a substitute for the FHA and lender requirements on a HECM reverse mortgage.
Review the terms before planning the closing
Ask the lender and title team which documents they need and whether the agreement creates a condition to resolve. Where relevant, identify transfer provisions, consent requirements, payoff information and who has authority to provide the necessary paperwork.
For a purchase, coordinate the seller’s solar documentation early rather than discovering an unresolved contract question near closing. For a refinance, do not assume that acceptance of the original mortgage establishes acceptance by the new lender.
I would keep the solar payment and any required property costs visible in the household budget as well. A system that changes the electricity bill can still create contractual obligations that need to be understood alongside the mortgage.
Sources and further reading
- Fannie Mae: special property eligibility, ADUs and solar (new tab)
- HUD: current FHA Single Family Housing Policy Handbook (new tab)
Talk through your question
Tell us what you are trying to accomplish. Schedule a conversation so we can identify the facts and documents needed for your situation.
Published September 13, 2026. Adapted from an origination discussion. Identifying details are omitted. Unconfirmed outcomes are not presented as completed loans. Program and lender requirements need an individual review. Nick Cunningham, Loan Officer, NMLS #907393. Mortgage services through Golden Bay Mortgage Group.
