fha home loan information
Oregon home buyer:why prepaid property taxes for 12 months?
We are closing on a first mortgage (FHA) in June. Seller paid property taxes through May. Loan charges include 12 months of property taxes, and taxes will also be in our monthly payment. Does that mean we will always be paid one year ahead? Our insurance agent said we could ask the lender to adjust this (after closing?), but I don’t know how that works or whether it is possible on an FHA loan. I appreciate any helpful information. Thank you.
The taxes should be pro-rated. There needs to be enough in your escrow account to pay the taxes when the bill is due. It may look like you are paying a year’s worth on page 2 of your HUD1 but I bet you are getting a credit from the seller on page 1 from the portion of the year they have lived in the house.
