When you purchase new construction, the actual property taxes (if paid in arrears in that state) may be lower because those taxes were based on undeveloped land. The lender will qualify you based on the property taxes adjusted for residential use. Sometimes homebuyers are shocked to see how much their tax liability goes up after the first year of buying a new construction home, so lenders check to make sure the buyer will not experience payment shock when that happens.
Related Article Title: Freddie Mac Selling Guide Updates – Bulletin 2019-16 – Dated July 10, 2019 Written by: Lloyd Rutherford, Staff Writer Freddie Mac issued a bulletin with a lot of details a lender needs to review. Read through this article as our expert points out what you need to know. Rule Synopsis: Freddie Mac […]