Simply Solar is a research-driven program designed to make homeownership more affordable and sustainable for FHA buyers. The program allows eligible borrowers to finance the full cost of a solar system—and any necessary upgrades—directly into their FHA loan.

In addition, homeowners can earn up to 3.5% of the purchase price, capped at $13,000, for participating in the program. The earned income can be used toward the down payment, closing costs, or reserves. A 30% federal tax credit on solar expenses further boosts the financial benefits.

The program is available to FHA loan borrowers purchasing single-family homes in states with higher electricity costs. There are no income restrictions or minimum credit score requirements. However, the property must be a single-family home suitable for solar installation (properties like condos or homes with significant shading are not eligible).

Clients earn income by completing a short, self-paced online homeownership education course. This education is designed to not only help them understand the benefits and responsibilities of homeownership but also to prepare them for the solar installation process. Participation in one or two brief surveys after closing also helps support the research aspect of the program.

The full cost of the solar system—and any related eligible upgrades (such as electrical panel improvements or minor roof repairs)—is rolled into the FHA loan. This is done up to a maximum of 20% of the lower of the home’s purchase price or appraised value. As a result, borrowers can finance their solar installation with no upfront out-of-pocket expense.

• Earned income (up to $13,000) to help with down payment, closing costs, or reserves.

• Reduced monthly electricity bills due to solar energy integration.

• A 30% federal tax credit on the solar system cost, which can significantly offset any potential tax burden.

• Potential increases in property value because of the free-and-clear solar installation.

Loan officers must first complete the Rezzy Simply Solar certification, achieving an 80% or higher score. When working with an FHA buyer in an eligible state, the loan officer should:

1. Connect the client with a Rezzy pro for a consultation and custom solar system design.

2. Register the loan on the appropriate portal under “FHA 30-Year Simply Solar,” ensuring that Rezzy’s certification and solar proposal are included in the initial loan package.

Best Practices

- Educate clients about the program early in the home buying process.

- Ensure clients complete the homeownership education course promptly.

- Connect the client with a Rezzy pro as soon as the property is under contract to secure the necessary solar proposal and documentation.

- Maintain clear and consistent communication with both the client and Rezzy throughout the process.

Pitfalls

- Attempting to apply the program to ineligible properties (e.g., condos or homes with heavy shading).

- Skipping the Rezzy proposal step, which is critical for integrating solar costs into the loan.

- Delays caused by poor communication or incomplete documentation, which can hinder the loan approval process.

Installation typically takes between 60 and 100 days, and it must be completed within 120 days from contract closing.