How to get FHA loan if property tax already payed for the next year?
I have already payed all of my property tax for 2010, but I understand that FHA loans will charge property tax with each payment. If i get an FHA loan do i risk having to pay property tax twice for 2010?
- Anonymous1 decade agoFavorite Answer
Your information is wrong. Prepaying your property taxes does not prevent you from getting an FHA loan nor do you have to "pay twice."
- MikeLv 61 decade ago
You won't pay property taxes twice.
When you finance your home and property taxes are placed in escrow, a check will be made for the property taxes paid or owed. From that, they will calculate whether you need to make a deposit in the escrow account and the amount that will need to be withheld for the next property taxes.
Even though you already paid this years taxes, the escrow account must have regular monthly payments in advance to pay your next years taxes.
As an example, in California 1/2 of the property taxes are due December 10th and the other 1/2 is due by April 10th. If a person has already made the December 10th payment, the other half is due in 4 months. Therefore about 2 months will required at closing for the escrow account and another 4 payments will be paid monthly with your mortgage payment so there will be enough in the escrow account to make the next property tax payment.