SOLAR ASSISTED MORTGAGE
A Solar-Assisted Mortgage is a home loan that incorporates the cost of installing solar energy systems into the mortgage, allowing homeowners to finance solar panels as part of their property purchase or refinance. This type of mortgage can help reduce upfront costs while enabling energy savings, tax incentives, and increased property value over time.
Programs & Products
Solar-Assisted Mortgage
A smarter way to finance your home and solar energy—together.
A Solar-Assisted Mortgage lets you incorporate the cost of solar panel installation into your mortgage, making it easier to go green while keeping your finances streamlined. Whether you’re purchasing a new home or refinancing your current one, our programs help you lower upfront costs, take advantage of tax incentives, and lock in long-term energy savings.
Cash-Out Refinance
FHA Solar & Wind Technologies (SWT) Purchase
Buy a solar-equipped home with an FHA-backed loan.
The FHA Solar & Wind Technologies (SWT) Purchase program allows homebuyers to finance solar energy improvements as part of an FHA mortgage. This government-backed option offers lower down payments and easier qualification requirements for energy-efficient homes.
Benefits:
✔ Low down payment (as little as 3.5%)
✔ Flexible qualification criteria
✔ FHA loan benefits with solar financing included
Cash-Out Home Equity Line of Credit (HELOC) / Home Equity Loan
Use your home’s equity while keeping your current mortgage.
A Home Equity Line of Credit (HELOC) or Home Equity Loan allows you to borrow against your home’s equity to finance your solar system without touching your existing mortgage. HELOCs provide flexible, revolving credit, while Home Equity Loans offer a fixed amount at a stable interest rate.
Benefits:
✔ Maintain your current mortgage while funding solar separately
✔ Flexible access to funds with HELOC or fixed payments with a Home Equity Loan
✔ Lower rates compared to traditional solar financing
FHA Solar & Wind Technologies (SWT) Purchase
FHA Solar & Wind Technologies (SWT) Purchase
Buy a solar-equipped home with an FHA-backed loan.
The FHA Solar & Wind Technologies (SWT) Purchase program allows homebuyers to finance solar energy improvements as part of an FHA mortgage. This government-backed option offers lower down payments and easier qualification requirements for energy-efficient homes.
Benefits:
✔ Low down payment (as little as 3.5%)
✔ Flexible qualification criteria
✔ FHA loan benefits with solar financing included
Conventional FNMA HomeStyle® / FHLMC GreenCHOICE®
Conventional FNMA HomeStyle® / FHLMC GreenCHOICE®
Energy-efficient home financing, backed by Fannie Mae and Freddie Mac.
The FNMA HomeStyle® and FHLMC GreenCHOICE® mortgage programs enable homebuyers and homeowners to finance solar energy improvements within a conventional mortgage. These options support a variety of energy-saving upgrades, making solar installation more affordable.
Benefits:
✔ Competitive interest rates for energy-efficient improvements
✔ One streamlined loan for home purchase or refinance and solar installation
✔ Long-term repayment for lower monthly payments
Why Finance Solar Through Your Mortgage?
Lower Interest Rates
Mortgage rates are significantly lower than personal loans or solar financing options, helping you save on interest costs.
One Simple Payment
Consolidate your solar investment into your mortgage—just one monthly payment covering your principal, interest, taxes, insurance, and electricity (PITI+E).
Increase Home Value
Homes with solar energy systems have higher resale values and are more attractive to buyers.
Energy Cost Savings
Lock in fixed energy costs for the life of your solar system, shielding yourself from rising utility rates.
Longer Repayment Terms
Unlike short-term solar loans, mortgage financing allows repayment over 15-30 years, keeping monthly costs low.
Tax Benefits
Take advantage of Federal Solar Investment Tax Credit (ITC) incentives and potential mortgage interest tax deductions (consult your CPA for details).
Frequently Asked Questions (FAQ)
What is a Solar-Assisted Mortgage?
A Solar-Assisted Mortgage allows homeowners to finance the cost of installing solar panels as part of their mortgage. Instead of taking out a separate loan for solar, you can roll the costs into your home purchase or refinance, benefiting from lower interest rates and longer repayment terms.
How does a Solar-Assisted Mortgage work?
You can either include the cost of solar panels in your home purchase loan or use a refinance option (such as a cash-out refinance or home equity loan) to pay for solar installation. This lets you spread out payments over 15-30 years instead of taking on high-interest solar financing.
What are the benefits of financing solar through my mortgage?
✔ Lower interest rates than solar loans or personal loans
✔ One simple monthly payment (PITI+E) instead of separate bills
✔ Federal tax credits & potential mortgage interest tax deductions
✔ Increased home value with solar panel installation
✔ Long-term repayment options for lower monthly costs
How do I qualify for a Solar-Assisted Mortgage?
Qualification depends on the type of mortgage you choose (FHA, conventional, refinance, etc.), but generally, you’ll need:
- A qualifying credit score (varies by program)
- Proof of income and employment
- A home appraisal (for refinance options)
- A solar system quote from an approved contractor
What Solar-Assisted Mortgage programs are available?
We offer multiple financing options, including:
- Cash-Out Refinance – Refinance your mortgage and use cash for solar installation.
- Cash-Out Home Equity Loan / HELOC – Use your home equity to fund solar without changing your mortgage.
- FHA Solar & Wind Technologies (SWT) Purchase – Finance solar with an FHA-backed loan.
- Conventional FNMA HomeStyle® / FHLMC GreenCHOICE® – Include solar in a conventional loan backed by Fannie Mae or Freddie Mac.
Can I refinance my current mortgage to add solar?
Yes! A Cash-Out Refinance or Home Equity Loan/HELOC allows you to refinance your mortgage and use the funds for solar installation. This helps you secure lower interest rates compared to solar loans.
What’s the difference between a Cash-Out Refinance and a Home Equity Loan/HELOC?
Cash-Out Refinance: Replaces your existing mortgage with a new one that includes extra funds for solar.
Home Equity Loan: A separate loan with fixed payments, using your home equity.
HELOC: A revolving credit line, like a credit card, that lets you borrow as needed.
Are FHA loans available for solar financing?
Yes! The FHA Solar & Wind Technologies (SWT) Purchase program allows homebuyers to include solar panel costs in their mortgage with low down payment and flexible credit requirements.
Can I get a solar loan if I have a conventional mortgage?
Yes! The FNMA HomeStyle® and FHLMC GreenCHOICE® programs allow solar installation costs to be included in a conventional mortgage or refinance.