Finance the home and solar
A fixed-rate FHA first mortgage includes the eligible cost of a new solar system. You qualify using the full loan amount, including solar—not just the home purchase.
FHA down payment assistance · Owned solar
FHA assistance.
A new home.
Room to begin.
Green Advantage combines FHA home financing, 3.5% or 5% down payment assistance (DPA), and a new solar system you own. Assistance can help with your down payment and eligible closing costs. Understand what you receive, what you finance, and how the pieces fit together.
Assistance is structured as a forgivable second mortgage with no monthly payments. Solar costs increase the first-mortgage balance. Eligibility and program conditions apply.
Owned solar.Financed within the FHA first mortgage.
Installedafter closing.
3.5% or 5%Assistance options
620+Program minimum credit score
$0 monthlyPayment on the DPA second lien
Three connected parts
Down payment help.
Support with closing costs.
The assistance and the energy improvement work together. The full mortgage payment, solar cost, and expected utility savings all belong in the decision.
Receive 3.5% or 5% assistance
Assistance can go toward the down payment and/or closing costs. It is documented as a 10-year forgivable second mortgage with no monthly payments, subject to its written terms.
Install after closing
The lender holds solar funds in escrow. Installation must be completed within 120 days under the program requirements, with a final inspection before the remaining contractor funds are released.
Start with the basics
Who—and what—
can qualify?
Both the borrower and the property must fit. A qualifying score is a starting point, not an approval.
Program summary reviewed October 2026. Current lender guidelines and underwriting control.
- Credit & qualification
- Minimum score of 620. Debt-to-income ratio follows automated underwriting findings; the borrower must qualify on the full loan including solar.
- Loan options
- FHA purchase and rate/term refinance; 25- and 30-year fixed terms listed in the program information.
- Property types
- Eligible 1–4-unit primary residences, manufactured homes, PUDs, and qualifying fee-simple townhomes. One utility meter per residence; townhomes must have no disqualifying HOA restrictions.
- Solar requirements
- A new system, or qualifying new panels added to an existing system. Existing solar debt cannot be paid off through this option; existing panels cannot have liens or UCC filings.
- Financing limits
- Eligible solar cost is capped at 20% of property value. Program information allows up to 120% LTV including solar; FHA loan limits still apply.
- Location
- Program information excludes Alaska, Hawaii, and New York. Availability elsewhere also depends on lender licensing, property eligibility, and solar installation feasibility.
Understand the tradeoff
Assistance today.
A larger loan to repay.
Solar is financed, not free. Explore how the system cost changes the first-mortgage balance alongside the assistance amount.
$
$
Illustrative assistance amount$11,375Subject to eligibility and the second-mortgage terms.
Base FHA loan (96.5% of price)$313,625
Solar cost added$35,000
Financed upfront MIP (1.75%)$6,100.94
Illustrative first-mortgage balance$354,725.94
Purchase illustration only. Base loan = price × 96.5%; solar is added before calculating upfront mortgage insurance. Assumes all upfront MIP is financed. Assistance is shown separately and is not subtracted from this first-mortgage calculation. Excludes other closing costs, prepaids, escrows, ongoing mortgage insurance, and second-lien expenses. Not an eligibility determination, Loan Estimate, or payment quote.
Look beyond the down payment
The full picture matters.
What the program may help with
- Eligible down payment and closing-cost needs.
- Owning a new solar system rather than leasing it.
- Reducing purchased electricity after installation, depending on the property, system, and utility tariff.
- Preserving some available cash instead of using it all at closing.
What to weigh carefully
- The additional mortgage principal and interest attributable to solar.
- Roof suitability, shading, installation scope, and warranty coverage.
- Actual utility bills, export credits, fixed charges, and projected production. Solar may not eliminate the electric bill.
- Second-lien recording, title, and applicable insurance expenses; the program information also lists a $300 final inspection fee.
Clear answers
Before you
take the next step.
Understand the assistance and the obligation behind it.
Can FHA down payment assistance help pay closing costs?
Yes. Green Advantage offers 3.5% or 5% assistance that may be applied toward eligible down payment and/or closing costs. It is a forgivable second mortgage with conditions, paired with a new solar system financed in the FHA first mortgage. Assistance may not cover every expense.
What is the difference between closing-cost assistance and lender credits?
Down payment assistance and lender credits are different. This program provides conditional assistance through a forgivable second mortgage. A lender credit is a separate pricing arrangement that may involve a higher interest rate. Neither means every closing expense disappears. Review the assistance, lender credits, fees, and remaining cash to close on your Loan Estimate.
Can I buy a home with less money upfront?
Down payment help and closing-cost assistance may reduce the amount you need from savings. Green Advantage combines that assistance with financed solar. You still need to qualify for the full mortgage, and some costs may remain. Compare your cash to close and long-term costs before choosing a program.
Is this free solar?
No. The solar system is financed inside the FHA first mortgage. Its cost increases the mortgage balance and the amount on which interest is paid. Assistance and potential utility savings must be evaluated alongside that cost.
Does the assistance have a monthly payment?
The program is described as providing a 10-year forgivable DPA second mortgage with no monthly payments, forgiven at post-closing installation. Obtain the actual note, security instrument, and forgiveness terms to understand the conditions, deadlines, and lien release process.
Is the assistance the same as zero cash to close?
No. Assistance can cover eligible down payment and/or closing costs, but remaining expenses depend on the loan, property, selected assistance option, seller contributions, and other available funds. An individual Loan Estimate is needed.
Can a home with existing panels qualify?
Program information permits qualifying additional new panels. Existing panels cannot have liens or UCC filings, and this option cannot be used to pay off an existing system. The property and installation still require lender and program approval.
Is this only for home purchases?
No. Program information also lists rate/term refinances. The example above is for a purchase; refinance calculations and permitted uses of assistance must be evaluated separately.
Is this website the lender or program administrator?
No. This is an independent educational draft about the Green Advantage FHA financing option with Arcasa. It does not accept applications, collect borrower documents, issue approvals, or provide rate locks. It is not operated by Arcasa, HUD, or FHA.
Learn more about FHA and assistance
Program information reviewed October 2026. Eligibility, costs, and forgiveness depend on current lender guidelines and your final loan documents.
FHA loan information from HUD ↗Arcasa program information ↗