Apr 082015
 

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

I realize it sounds a little silly to live off the grid yet rely on a mortgage to buy a home, but let’s investigate the possibilities of producing your own electricity. Solar panels are becoming more commonplace and more economically practical. How do they affect your ability to qualify for a mortgage?

If the home seller owns the panels, your only issue should be one of value. It’s not clear the market (or appraisers) believes solar panels are worth as much as it costs to install them. If the home’s appraised value is low, you will have to come up with some cash to cover the shortfall if you want the home.

If the seller leases the panels, we have a lot more issues. Among them are:

– the lease payment will be added to your debts when determining if you qualify. If you’re pushing the debt limit on qualifying, this could put you past the limit;

– and, the company that leased the panels must take responsibility for any damage they might cause while installed or when removed.

Finally, whether the panels are leased or owned, the home must remain connected to traditional electrical lines. Even if the panels generate enough power for 3 homes, you still have to be connected to the grid.

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