How this looks in practice

For Riverside seniors and older homeowners, this rule is best read as a practical screening question: A HomeSafe appraiser must not include the value of leased solar mechanical systems or components in the property’s market value. The source for this point is HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133, Revised April 2026, current as of 2026.

Leased panels may reduce a utility bill, but the appraiser cannot count leased solar mechanical systems or components in the HomeSafe market value. That distinction can surprise homeowners who think any rooftop solar automatically increases the value used for lending.

The useful first step is to identify whether the system is leased, financed, or owned outright. A solar lease should be separated from the home equity discussion because the equipment may not belong to the homeowner in the way required for value inclusion.

Verify the exact product, current guideline date, property facts, and lien documents because HomeSafe is proprietary.

Key numbers

• Leased solar value is excluded from market value.
• Source page: Solar guidelines, page 133.
• Authority: HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133

How this looks in practice

For Riverside seniors and older homeowners, this rule is best read as a practical screening question: A HomeSafe appraiser may include the value of a solar system only when the borrower owns it in full and it is legally part of the property. The source for this point is HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133, Revised April 2026, current as of 2026.

Owned solar is different from leased solar. When the borrower owns the system in full and it is legally part of the property, the appraiser may include its value under the HomeSafe rule.

A homeowner should be ready to document ownership, permits, and whether the system is attached as real property. The stronger the paper trail, the easier it is to separate an owned improvement from a third-party contract or personal-property arrangement.

Verify the exact product, current guideline date, property facts, and lien documents because HomeSafe is proprietary.

Key numbers

• Borrower must own the system in full.
• System must be legally part of the property.
• Authority: HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133

How this looks in practice

For Riverside seniors and older homeowners, this rule is best read as a practical screening question: For a financed solar lien, the creditor may file the UCC-3 after HomeSafe closing once payoff funds are received, with a post-closing condition to confirm release. The source for this point is HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 134, Revised April 2026, current as of 2026.

When solar financing is being paid off with closing funds, the lien release may not happen before the closing table. The HomeSafe guideline allows the creditor to file the UCC-3 after closing once payoff funds are received, with a post-closing condition to confirm the release.

For borrowers, this means timing and follow-up matter. Escrow, title, the solar creditor, and the loan team need a clean payoff and tracking process so the release is not forgotten after the loan records.

Verify the exact product, current guideline date, property facts, and lien documents because HomeSafe is proprietary.

Key numbers

• UCC-3 may be filed after closing when payoff funds trigger release.
• A post-closing condition confirms the release.
• Authority: HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 134

How this looks in practice

For Riverside seniors and older homeowners, this rule is best read as a practical screening question: A HomeSafe property is ineligible if a solar lease or PPA restricts transfer of the home in a way that conflicts with proprietary guidelines. The source for this point is HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133, Revised April 2026, current as of 2026.

Some solar leases and power purchase agreements contain transfer language that can interfere with a future sale or title transfer. If those restrictions conflict with proprietary guidelines, the property may be ineligible for HomeSafe.

This is why the contract matters as much as the panels. A homeowner should provide the full solar agreement, not only the monthly bill, so transfer restrictions can be reviewed before appraisal and closing expectations are set.

The downside is straightforward: Restrictive solar agreements can stop loan approval. Address it before assuming the product will fit.

Key numbers

• Restrictive transfer terms can make the property ineligible.
• Full solar contract review is important.
• Authority: HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 133

How this looks in practice

For Riverside seniors and older homeowners, this rule is best read as a practical screening question: If a UCC-1 is recorded against the HomeSafe subject property for a solar lease or PPA, a UCC-3 release is required before closing. The source for this point is HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 134, Revised April 2026, current as of 2026.

A recorded UCC-1 tied to a solar lease or PPA can show up in title work even when the homeowner thinks of the panels as separate from the mortgage. Under the HomeSafe rule, a UCC-3 release is required before closing when a UCC-1 is recorded against the subject property.

The practical lesson is to order and read title work carefully. If a UCC filing appears, the team needs to coordinate the release rather than waiting until the final week and risking a delayed closing.

Verify the exact product, current guideline date, property facts, and lien documents because HomeSafe is proprietary.

Key numbers

• UCC-1 on the subject property requires UCC-3 release before closing.
• Source page: Solar guidelines, page 134.
• Authority: HomeSafe_Underwriting_Manual.pdf, Solar – Leases, Liens, and Power Purchase Agreements, page 134