A home with solar panels installed on the roof

Is there anything better than saving money? Extra cash for your down payment or closing costs, lower energy bills on your new home — with the FHA with solar program, you can get both! It’s rare for one loan to do so much, but this program can make it happen.

What is the FHA with Solar Program?

The FHA with solar program is a program that combines the financing for your home purchase and solar panels into one loan. Powered by Arcasa, you’ll work with solar experts through the process of home inspection, design, installation and system activation. While their team handles the solar side, your loan officer will work with you to ensure a smooth loan closing.

But that’s not all. The FHA with solar program could provide up to 5% of your home’s purchase price in down payment assistance. That’s cash to apply toward your down payment, closing costs or rate buydowns.

In short, the FHA with solar program gives you mortgage and solar financing with down payment assistance all in one loan.

Solar loan benefits

Down payment assistance

With the FHA with solar program, you could receive up to 5% of your home’s purchase price to help cover the down payment.
Closing cost coverage

The assistance could also be used to cover fees and other closing costs.
Home value

Solar panels could increase your new home’s value, with some studies showing a boost of as much as 4%.
Utility bill savings

Creating energy from solar panels means using less power from the utility company — reducing or eliminating your electricity bill.
Tax credits

By installing solar panels, you may be eligible to save more through state and federal tax credits.

Are solar panels right for you?

Home requirements

Solar isn’t one-size-fits-all. Before you close with the FHA with solar program, you’ll get a standard home inspection or solar survey to determine if your home is ready for solar energy.

Here’s what will be considered:

Sunlight exposure: Does your roof get ample sun, or is it shaded? Tree trimming can help boost solar efficiency.

Roof direction: East, west and south-facing roofs are ideal for solar panels.

Roof condition: A well-maintained roof can last 25-35 years, extending its life when covered by solar panels.

Electrical system: Is your breaker box compatible to handle increased power from solar panels? This is essential for future home electrification.

How solar changes homeownership

From lower electric bills to increased home value, there are many ways you can benefit as a homeowner with solar energy. But there are a few things you’ll need to keep in mind when living with solar panels.

Maintenance
Solar energy systems require minimal upkeep. The main task is keeping the panels clear of dirt, snow and debris for optimal performance. Periodic checks for leaves or signs of wildlife beneath the panels are also recommended. You may choose to handle this maintenance yourself or hire professionals through maintenance plans.

Warranties
Arcasa partners with contractors who provide workmanship and roof warranties covering installation defects and roof damage. They also offer a limited lifetime warranty. Terms vary, so it’s essential to review your contract and discuss your policy with an Arcasa representative.

FHA with solar program requirements

Total solar line item must be 20% or lower of purchase price/appraisal
FHA loan limits apply to pre-solar amount
Borrowers must use FHA loans
Homes must be approved for solar by Arcasa
Solar must be installed by Arcasa and authorized build partners

FHA 203(b) eligibility

Meet standard FHA credit qualifications
5% minimum down payment
1-4 unit primary residences

FHA with Solar Program FAQs

1. Solar Survey: If necessary, Arcasa will coordinate a solar survey to evaluate your home’s solar needs.
1. Loan closing: We’ll help you with a smooth closing. Once you have your keys, Arcasa’s team will reach out to discuss the next steps.
1. Design & permitting: After the home inspection, engineers will finalize the design. Arcasa will secure the necessary permits to ensure compliance with all regulations.
1. Installation: Your solar system installation will occur within one to three days after permit approval. Arcasa will notify you before work begins.
1. Inspections & utility approval: After installation, local authorities and your utility provider will inspect the system to ensure proper installation. Arcasa will coordinate this process.
1. System activation: Once approved, your system will be activated. You’ll receive a walkthrough of its features and monitoring instructions.
1. Solar savings: When your system is operational, you’ll start seeing lower energy costs and making a positive environmental impact.
While it is not required, if you choose to have a home inspection completed on the home, Arcasa will use it to help determine the solar plans.

If you choose not to get a home inspection, or if they need more information, Arcasa may schedule a separate site survey to finalize the solar plans. If an additional survey is required, there is no additional cost to the customer.
No. All down payment assistance funds for the FHA with solar program are provided as a forgivable 2^nd mortgage.