We’ve updated our underwriting procedures for property tax qualification and escrow collection.
- Disclosures will use the current tax amount from Core Logic/Smart Fees.
- Underwriting and Closing will use the current tax amount from tax bill or title commitment if it differs from Core Logic/Smart Fees for qualification and escrow collection.
State-Specific Guidelines:
| STATE | Purchase Transaction (Existing Construction) | Purchase Transaction (New Construction) | Refinance Transaction (Existing Construction) | Refinance Transaction (New Construction) |
|---|---|---|---|---|
| California | The lower of 1.25% of the sales price or the projected tax estimated from CoreLogic/Smart Fees. | The lower of 1.25% of the sales price or the projected tax estimated from CoreLogic/Smart Fees. | The actual tax bill or actual taxes from CoreLogic/Smart Fees. | The lower of 1.25% of appraised value or estimated tax value as long as estimate is not based on land value only. |
| All other states | If the projected estimate from CoreLogic/Smart Fees exceeds current actual tax amount by 25% or more, the estimated amount will be used. Otherwise, the current taxes will be used. | The lower of 1.50% of the sales price or the projected tax estimated from CoreLogic/Smart Fees. | The actual tax bill or actual taxes from CoreLogic/Smart Fees. | The lower of 1.50% of appraised value or estimated tax value as long as estimate is not based on land value only. |
Check AD Non-QM Guidelines for more information.
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