Financing

Financing comparison for first-time buyers

Enter your system price and loan term. Compare a good-credit and a fair-credit rate scenario side by side, useful if your credit history is still relatively thin.

Your numbers

1 Project details Optional
Shown on your exported report. Leave blank to skip.
2 Your system
3 Two rate scenarios to compare
Common if your credit history is still relatively thin.

How it works

Three steps for a first-time buyer

Step 1

Get quotes from more than one lender

A thinner credit history can mean a wider spread between lender offers, so shopping around matters more, not less. The credit union vs national lender comparison is a good place to start.

Step 2

Compare a good and fair credit scenario

Even if you don't know your exact rate yet, testing a range shows what's realistically at stake and helps you evaluate quotes as they come in.

Step 3

Consider zero down given limited post-purchase cash

Since a home purchase often uses up available savings, a zero-down solar loan avoids requiring another lump sum. The zero down loan total cost calculator shows exactly what that option costs.

Reading your first-time buyer comparison

Why credit history depth matters even with a good score

Lenders look at more than a single credit score number, including how long your credit history extends and how many active accounts you have. A first-time buyer with a shorter credit history sometimes lands in a fair rather than excellent tier even with an otherwise decent score, resulting in a higher APR. On a $26,000 loan over 20 years, the gap between a 6.99% and 8.99% APR adds about $7,762 to the total cost. HUD's homebuying resources cover broader financial planning considerations that often overlap with this exact situation.

Why waiting a few months can sometimes help

If your credit history is genuinely thin, a few months of on-time payments after your mortgage closes can meaningfully build your file and potentially improve the rates you're offered. This isn't necessary for everyone, but it's worth considering if you're not in a rush and want to maximize your chances of the best available rate. The CFPB's issue spotlight on solar financing covers general credit and financing considerations worth reviewing alongside this decision.

Why zero down often makes sense right after buying a home

Most of your available cash likely went toward a down payment, closing costs, and initial moving expenses, leaving limited room for another large upfront payment on solar. A zero-down loan avoids that requirement entirely, financing the full system cost, though it does mean paying interest on the whole amount from the start.

What to check about your specific budget

Before committing to any solar loan payment, confirm it fits comfortably alongside your new mortgage and other expenses using the financing hub's budget-focused calculators. A payment that feels manageable on paper should also feel manageable once you're actually living with your full new set of home expenses. The monthly budget fit calculator is built specifically for that check, and the quick system size estimator can help confirm your system price is realistic to begin with.

Whether a co-signer could help

If your credit history alone results in a higher rate than you'd like, adding a co-signer with a stronger credit file is one option some lenders allow. The co-signer impact calculator shows what difference that could make to your quoted rate. The monthly bill reduction estimator can help you build a realistic budget picture before applying.

Questions

Frequently asked

Yes, solar loans are available to any homeowner who meets the lender's credit and income requirements, regardless of how long they've owned the home. First-time buyers sometimes have a thinner credit history, which can affect the rate offered, but it doesn't disqualify them from financing.

There's no requirement to wait, though many people prefer to settle into a new home, understand a full year of utility bills, and rebuild cash reserves before taking on an additional loan. If your credit or budget would benefit from a few months of stability first, that's a reasonable approach.

A thinner credit file, common for younger or first-time buyers, can result in a fair rather than excellent credit tier, meaning a higher APR than someone with a longer credit history and the same score. On a $26,000 loan, the difference between a 6.99% and 8.99% APR over 20 years adds about $7,762 to the total cost.

Often yes, since most of your available cash likely went toward the down payment and closing costs on the home itself. Zero down solar financing avoids requiring another large upfront payment on top of that, though it does mean paying interest on the full system cost.

Related tools

Keep comparing your financing options

Credit score impact on rate Zero down loan total cost Co-signer impact calculator Credit union vs national lender Monthly budget fit calculator Financing options for low credit Loan payment calculator All financing tools