General information and FAQ related to financiers and common homeowner questions
Q: Are there prepayment penalties?----
- No prepayment penalties for Loanpal or Sunlight.
Q. Can I include the cost of a reroof into the Loan?
- Depending on the financier, most will allow a reroof in the loan, subject to certain conditions. Generally speaking, price per watt cannot exceed $5.99/W
- For more specific financier information, keyword search "reroof"
Q. Where can I find dealer fees?
- Dealer fees and information can be found within Alchemy. Keyword search "dealer fees"
Homeowners who are moving have two options with their solar loan.
1) Add the cost of the system into the home asking price and pay off the loan with the proceeds. This is by far the preferred and least-hassle option for all parties. However, as different people and markets value solar differently, it may not fit all scenarios.
2) Transfer the loan to the new homeowner. Each financier is different for how they handle these steps, but in general, homeowners will need to work directly with their financier to transfer the loan. The process typically follows along the same logical lines:
a) New homeowner identified and process started by current homeowner/loanee via call into financier
b) New homeowner is sent credit application and must pass credit
c) Financier provides paperwork/forms on a case-by-case basis thereafter. Typically these are 2-3 forms including a release form and a loan transfer doc.
d) The new homeowner will sign the loan docs around the closing date, either on or shortly thereafter.
e) Homeowners do not need to take any action regarding the UCC-1. The capital provider will simply update the name on the UCC-1 on the backend.
- Note: while the above offers general guidance, be advised each financier may have a unique process.
1) Background: Homeowners typically refinance their home in order to gain more favorable lending rates, or potentially gain some equity. Loans are coordinated via financiers (IE Sunlight, Loanpal) through various capital providers, such as banks or credit unions, who fund the loans themselves. Typically, solar financiers act on their behalf for day to day operations such as processing payments, paperwork, etc. However, in the case of a refinance or a loan transfer, typically homeowners will be directed to work directly with capital providers. Reps and homeowners should be aware of this in terms of any fees, as solar financiers will have no influence on fees associated with processing.
2) Typical Refinancing Process will typically follow these rough steps:
a) Homeowner initiates refinance with mortgage officer
b) The Mortgage officer may in qualifying the homeowner calculate LTV (loan to value). They may come across the UCC-1 Lien across the solar equipment and may, incorrectly, deem that the loan is an attachment to the residence, however it is not and should not prevent refinance. It is important to note that in many cases this is quite literally a matter of perspective/conceptual understanding on the side of the mortgage officer.
c) The UCC-1 lien is only a lien on the solar equipment-- it is the solar financier's stake in the equipment that can sometimes throw mortgage officers. However, it's important to note that financiers do not take a stake in the home, only the solar equipment. Therefore, the UCC-1 should not prevent the refinance process
d) Financier will subordinate the UCC-1, posturing themselves in second position to the mortgage company, with the intention of positioning themselves to say "You don't need our permission since we only have a stake in the equipment, but, you have it anyway, to proceed with the refinance". It is important to note that financiers will not lift the UCC-1, simply because they are wary of bad actors stealing the solar equipment.
e) Homeowner successfully refinances their home after the subordination of the UCC-1