State and local mandatory charges against a property.
Property taxes are state and local mandatory charges against a property. The tax rate, exemptions, and special assessments vary between city, county, and state.
In California, for qualification purposes, the projected property tax payment is calculated by multiplying the city’s given tax rate by the home’s purchase price plus any special assessments from the property’s current tax bill. That total divided by 12 determines the projected monthly tax amount.
If your loan is structured with an impound account, the above-calculated figure will be included in your overall monthly mortgage payment. If your loan is structured without an impound account, it will be your individual responsibility to pay the County Assessor once the semi-annual bill comes due (in February or November).
In addition to the “secured” tax bill described above, most properties in CA will be subject to a one-time “supplemental tax bill,” issued between 3-9 months after your home purchase. JVM Lending will provide more information on this bill after closing.
In Texas, for qualification purposes, the projected property tax payment is determined by the value listed on the currently existing tax bill minus any exemptions that do not apply to the prospective homebuyer (e.g., we will remove any deductions that result from the ‘homestead’ exemption for any investment purchase).
If your loan is structured without an impound account, you are required to pay the annual tax bill as it comes in January. There are no “supplemental tax bills” in TX, although the property may still be reassessed by the County at any point to determine if property taxes should be increased.