Mortgage Loans

[Bamagirl80]

I hope to purchase the home I presently occupy (lease purchase from current owner) This coming March. I plan to go FHA 15 yr. fixed.  Last years annual property taxes the owner paid was $1,250.00 .  Iv'e learned that once the property is "homesteaded"  my yearly taxes will be around $800.00 .  My question is, does  FHA count the $1,250.00  or $800.00 when calculating  property taxes into my monthly payments when we close?   Appreciate any advice.

[smileyedna]

Bamagirl

I'm buying in Bama right now, FHA.  Property taxes in your escrow PITI should be figured at the homestead rate, my reasoning is that FHA is a loan for owner-occupant's primary residence, thus the lender should expect all of their FHA clients in Alabama would homestead. 

If the lenders you work with initally figure the taxes out at the higher rate I know for sure you can go get your homestead exemption and use that to have the lender adjust the monthly tax escrow afterwards.

[Bamagirl80]

Thanks - certainly good to know! So given this, my monthly taxes (in escrow) should be around $67 . Thanks again...

[203bravo]

When I closed on my house the seller had not filed homestead while they lived here.  My taxes for escrow were figured according to the current tax bills and I had to send in a copy of my homestead and the anticipated new tax amount from the county for them to refigure my escrow.

[StartingOver10]

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203bravo wrote:

When I closed on my house the seller had not filed homestead while they lived here.  My taxes for escrow were figured according to the current tax bills and I had to send in a copy of my homestead and the anticipated new tax amount from the county for them to refigure my escrow.

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^^^This is correct. The lender is not going to short the escrow account on the promise that you will apply and obtain the credit for the homestead exemption. The lenders escrow will be for the amount of the taxes for the most recent year and then when you homestead the tax bill will be reduced. Any overage will be returned to you in the normal escrow analysis done annually.

[chasmith]

I closed in April (conventional / NACA) and tax escrow was based on the purchase price and tax rate.  The 50% new construction credit was ignored.  Fortunately my home was appraised (the State does it here) in June and tax bills came out in July.  My escrow was adjusted after a little urging to CitiMortgage (my lender). 

[StartingOver10]

Yes, new construction is a little different than an existing property where the tax bill is available. For new construction they will do as the above poster's experience indicates because if they collected the most recent taxes it would be on vacant land only which won't be enough to pay the tax bill with an improvement on the land.