In many cases, an additional borrower is needed to qualify to have solar installed on your home.
Homeowners are continuing to investigate installing solar roofs for their homes in the Southwest. It certainly makes sense given the amount of sunny days we experience each year. This coupled with tax incentives makes now a great time to look into solar power.
Some homeowners may not qualify for the purchase financing of their solar roof. In this scenario, an option is to add a qualified co-signer on the loan. More and more lenders are requiring that the additional qualified co-signer be named as an owner on title to the property. While you can choose anyone to be a qualified co-signer, be mindful that this person is now a co-owner of your home.
Here is a scenario we are getting calls about –
A consumer is interested in purchasing solar from a solar company. The solar company will set up an appointment to review the home and determine a quote for installing solar. At this point, the consumer will be given a credit application to complete. Often this is done online. The application goes to the lender who makes a determination as to whether the consumer qualifies for the solar financing. In the event that the homeowner does not qualify on their own, the lender may request an additional signer. Not qualifying could be the result of:
- Fixed or limited income
- Credit issues
- Excessive debt
- Debt to income ratio
We may be able to help. If the lender is requiring the additional qualified borrower to be on title to the home, a deed can be created and recorded. This should satisfy the lender’s requirement. We will do the research on the property to find out who is on title. We will assist in finding out if the lender requires the co-borrower to be on title 100% jointly or if a partial percentage interest is acceptable. Depending upon lender guidelines, you may or may not be able to remove the co-owner once the solar is installed.
Call us if you have questions. We are happy to assist you. 702.233.4014 or email us at [email protected]
Quick Claim USA and their employees are not attorneys in the State of Nevada or in any other State or Jurisdiction. Quick Claim USA is not licensed to give legal advice and may not accept fees for giving legal advice. Should you have questions regarding any of the above items, you must seek the advice of independent legal/tax counsel of your choosing.
