If private lenders are not informed about some issues, they won’t be well-versed in certain rules and regulations about making deals. In this instance, solar power is gaining the most momentum in the United States in recent times, especially in homes. For instance, by 2019, California had invested in solar by installing over one million solar units in homes. In fact, there are several state laws about solar power in the US.
Regardless of these developments, you ought to ask some specific questions before investing in solar systems. This is especially the case if you are underwriting or originating loans in California or states with a strong presence of the solar system. Some of the questions you should ask your borrower if they are interested in refinancing or purchasing solar panels include:
- What are the solar panel’s debt financing and ownership structure?
- Should the panels be outright owned or leased?
- Is the home in question within sustainable access to standardized electrical utilities?
- Is there a Property Assessed Clean Energy (PACE) loan?
- Is the solar panel secured or not?
Beyond the questions above, it is also important to check the appraiser’s requirements to ensure the appraiser is the custodian of precise information on the solar panels’ ownership structure. Lastly, it is pertinent to maintain open-mindedness when evaluating appraisals void of the comparable sales of solar panels.
Before underwriting or underwriting loans on solar power as a private lender, visit this page to learn what you need to know.
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