JVM Lending’s Home + Solar Panel Mortgage Loan uses FHA financing to combine your home mortgage with solar panel financing. FHA loans are popular for their flexible qualification requirements and low down payments, making them ideal for first-time homebuyers.

With this program, you can receive up to 100% financing for both the home and the solar system—meaning no cash is needed at closing. Plus, buyers earn 3.5% back, which can help cover closing costs or build cash reserves.

How Do You Combine Home and Solar Financing?

Using FHA financing, this product bundles your mortgage and solar system costs into one loan. By including the solar installation in your FHA loan, you simplify your payments into a single monthly amount.

The program requires that the solar system be installed within 90 days after purchase, ensuring that you start enjoying energy savings immediately.

Benefits of Integrating Solar Panel Financing Into Your Mortgage

Integrating solar panel financing into your home loan offers several key benefits:

• Lower upfront costs with up to 100% financing* for both the home and solar
• A 3.5% rebate back on the home’s sales price, which can be used for your down payment, closing costs, or saved as cash reserves
• One unified payment stream, covering the entire cost of home and solar system financing
• Reduced energy bills through renewable solar energy, helping to lower your monthly expenses
• Solar systems come at a discounted cost, and buyers can choose from multiple contractors.

*Important Note: If utilizing 100% financing, the maximum purchase price is limited to $375,000.

How Does Solar Financing Impact Your Energy Bills?

Integrating a solar system into your FHA loan means you install renewable energy technology without additional upfront expenses. The savings on utility bills can accumulate over time, helping to offset your mortgage payments. With the solar system installed within 90 days, you’ll begin to see these energy savings quickly, contributing to improved cash flow over the life of the loan.

Tax Savings and Federal Incentives 

Homebuyers who opt for this FHA solar financing product can benefit from significant tax savings. By installing a solar system, you gain access to the Residential Clean Energy Tax Credit, which helps create an immediate financial cushion after closing. This federal tax credit is 30% of the cost of the solar system, and directly reduces your tax liability, making your transition to renewable energy more affordable and financially rewarding.

In addition to lowering your monthly utility bills, these tax credits enhance your overall return on investment, providing long-term economic benefits while boosting your home’s market appeal.

Eligibility Requirements

To qualify for this FHA solar financing product, you must meet these specific requirements:

• A minimum FHA-approved credit score (typically ranging from 580-640)
• Proof of stable income and employment history
• A property appraisal that confirms suitable roof conditions and minimal shading for solar installation
• A debt-to-income ratio that meets FHA financing guidelines

These criteria ensure that both your home and solar system installation are viable investments that will deliver long-term energy savings.

For more details about eligibility, please contact us.

How JVM’s Home + Solar Mortgage Works

• Step 1: Qualification and Application

Begin by filling out and submitting your loan application. During the application process, you’ll provide standard documentation—including proof of stable income, credit history, and employment verification—to meet FHA financing criteria. If you opt for 100% financing, no cash down is required for either your home purchase or the solar system.

• Step 2: Property Appraisal and Solar Suitability Assessment

Once your application is submitted, your property undergoes a detailed appraisal. This evaluation checks for optimal roof conditions, minimal shading, and overall suitability for solar panel installation. The appraisal ensures that your home can support a solar system that will deliver the expected energy savings.

• Step 3: Loan Approval and Unified Financing

After your property qualifies, the FHA solar financing product consolidates the cost of your home and solar system into one unified loan. This integration simplifies your finances by combining the two expenses into a single monthly payment under competitive FHA loan terms.

• Step 4: Closing and Rebate Allocation

At closing, the loan is finalized. Additionally, you benefit from a 3.5% rebate based on your home’s sales price. This rebate is designed to help offset closing costs or to build cash reserves, further reducing your initial financial burden.

• Step 5: Solar System Installation

Following closing, you must install the solar system within 90 days. This timely installation is a requirement of this loan and allows you to start enjoying renewable energy benefits immediately. The short installation timeline ensures that energy savings begin quickly, contributing to lower utility bills and improved cash flow.

• Step 6: Ongoing Benefits and Energy Savings

After installation, your solar system starts generating renewable energy, reducing your reliance on traditional power sources and lowering your monthly energy bills. The unified financing structure means that you continue to make one manageable payment for both your home and solar system, while the energy savings and potential tax credits enhance your long-term financial stability and increase your home’s market value.

Home + Solar Financing FAQs

What benefits does this solar loan offer compared to traditional financing options?

This loan provides up to 100% financing for both your home and solar system. It simplifies your finances by combining both costs into one FHA loan, leveraging flexible qualification requirements and low down payments—ideal for first-time homebuyers.

How will integrating solar panel costs into your mortgage affect your overall loan terms?

By adding solar costs to your FHA mortgage, you get a single, unified loan where the solar expenses become part of your total balance. This streamlines monthly payments while maintaining competitive FHA rates and terms, eliminating the need for separate financing.

What incentives or tax credits are available?

Homebuyers can take advantage of federal incentives such as the Residential Clean Energy Tax Credit. This federal tax credit amounts to 30% of the cost of the solar system. This tax credit directly reduces your tax liability, lowering the overall cost of transitioning to renewable energy and enhancing long-term savings on your investment.

How does the 3.5% rebate work?

This program offers a 3.5% rebate based on the home’s sales price. The rebate is applied at closing and can be used to offset closing costs or build cash reserves, providing an immediate financial boost as you start your journey toward energy efficiency.

What specific requirements must be met for a solar system installation?

Your property must pass an appraisal confirming optimal roof conditions and minimal shading, and the solar system must be installed within 90 days after closing. You also need to meet FHA financial criteria, such as a minimum credit score, stable income, and an acceptable debt-to-income ratio.

Does combining solar panels with my mortgage affect my credit score?

No, your credit is assessed as part of the overall FHA loan process. Integrating solar expenses is handled within the standard credit evaluation, so it won’t have any additional negative impact on your score.

Will solar financing boost my home’s resale value?

Yes, homes equipped with energy-efficient features like solar panels are more attractive to buyers. This increased appeal often leads to a higher market value, building long-term equity in your property.

Is a Home + Solar Panel Mortgage Loan Right For You?

There is no one-size-fits-all for mortgage financing. The best way to determine whether our Home + Solar Panel Mortgage makes the most sense for you is to talk to one of our mortgage experts at JVM Lending. Our experts can walk you through monthly payment scenarios, give you current interest rates, and discuss any other questions or concerns you might have.