Unique Properties and Properties with Solar

The weather is starting to cool off and interestingly enough, I have been getting numerous inquiries about unique properties. Most unique properties are going to be fine to obtain lending on and this month I wanted to cover two popular types of unique properties.

Mixed Use Properties
Fannie Mae purchases or securitizes mortgage that are secured by properties that have a business use in addition to their residential use, such as property with space set aside for a day care facility, a beauty or barber shop, or even a doctor’s office. The following special eligibility criteria must be met with these types of properties:
• The property must be on a one-unit dwelling that the borrower occupies as a principal residence
• The borrower must be both the owner and the operator of the business
• The property must be primarily residential in nature
• The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residential property

Properties with Solar Panels
The ownership and debt financing structures commonly found with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate. Common ownership or financing structures include:
• Borrower-owner panels
• Leasing agreements
• Separately financed solar panels
• Power Purchase agreements

Fannie Mae will purchase or securitize a mortgage loan on a property with solar panels. If the borrower is, or will be, the owner of the solar panels (meaning the panels were a cash purchase, were included in the home purchase price, were otherwise financed, and repaid in full, or are secured by the existing first mortgage), our standard requirements apply (for example, appraisal, insurance, and title).

Properties with solar panels and other energy efficient items financed with a PACE loan are not eligible for delivery to Fannie Mae if the PACE loan is not paid in full prior to or at closing.

by Andrew Augustyniak, Peoples Mortgage