Last week I posted information on our Latest in Solar News page about new offerings by Fannie Mae. Yes, the government can actually work for you in this case. Fannie Mae is offering a HomeStyle Energy Program that includes solar energy. This financing option opens the door for so many who may otherwise been unable to purchase and install solar energy in their home.
The program provides more affordable financing and is available from all Fannie Mae lenders. Some property owners want to maximize their solar savings, solar loans allow them to buy a solar energy system even with no cash on hand to make a purchase. Solar loans come in many different forms, but this program may surpass all others by offering “the lowest cost of capital for new solar installations to date”.
There are new flexibilities that include the ability to refinance previous debt taken out for energy improvements. For example, homeowners can now take a limited cash-out – up to 15 percent of the home’s value – to pay off consumer debt, a home equity loan, or Property Assessed Clean Energy (PACE) lien used to finance energy efficiency improvements.
In the past, this would have required a full cash-out refinance, which may have made the cost of refinancing more expensive. Borrowers also may benefit from greater flexibility under a limited cash-out refinance when paying off energy improvement debt.
I cannot even pretend to understand all the financing options available, but I can recommend that you do plenty of research before making your decision. I hope you find the best financing option for your solar project. I’m attaching several links that, hopefully, will help you.
Explanation of Fannie Mae’s HomeStyle Energy finance option: http://news.energysage.com/fannie-mae-solar-homestyle-energy-program-explained/
HomeStyle energy FAQs: https://www.fanniemae.com/content/faq/homestyle-energy-faqs.pdf
What the Housing Industry Forum has to say: http://www.fanniemae.com/portal/funding-the-market/hif/2016/energy-efficient-041416.html