Due Dates
Property taxes and or insurance due within 60 calendar days of closing must be paid at time of loan closing. Any taxes and or insurance due within 30 calendar days of purchase must be paid prior to purchase. Please do not pay any taxes on the loan after it has been purchased by AHFA. Also, if applicable, do not pay Mortgage Insurance installments after AHFA’s first scheduled payment date with the borrower.
Property taxes must be paid through the current tax payment period, prior to the loss of the discount date, if applicable (the date the tax assessor’s office indicates to avoid late fees on taxes paid). The date through taxes are paid must agree with exceptions for taxes in the title policy. Under no circumstances should the title policy take exception to taxes other than those, which are not yet due and payable. Postponed or deferred taxes are not acceptable.
Mortgage Insurance
The Lender will be responsible for making payment to the private insurance company or to HUD for the months they are collecting the payment.
In order to ensure correct funding, the Lender must correctly reflect mortgage insurance premiums on the Closing Disclosure, Initial Escrow Account Disclosure and Payment Letter.
Pay History
A payment history is required prior to loan purchase where payment(s) were due on the first of the previous month (i.e., first payment due per Note is July 1, and loan is to be purchased August 15). It is the Lender’s responsibility to forward an updated payment history if the previous history that was provided is outdated.
The pay history must include, evidence that all payments due have been made, that the mortgage insurance has been paid, a beginning and ending balance of the escrow account and current principal balance.
For assistance or if you have any questions, contact Lisa Treece at
ltreece@ahfa.com
.
