PSL with Buy Down

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  • #71255
    RAnthony
    Member

    Hello!
    We reached out to the MC for a PSL. We sent over all the information for the property. She informed us that she cannot use the property taxes provided and that we would need to buy down further for the property. The property will be a new construction. I sent her over the property tax rate of .31%. In her response she used .9%. Thats 3 times the actual rate and it is messing with our numbers. I also included the county’s website that shows the property tax rate and 2-3 properties 5 houses down in the same neighborhood to show the tax rate. Can someone please help me understand why the MC can’t use the rate provided? I would like to understand before saying yes we can buy down further and having an issue later on down the line. Just wondering if anyone can provide insight. Thanks in advance. With the numbers we submitted it is within our monthly affordability with the 5 point buy down, but the MC is saying they cannot use the property tax numbers and we need to buy down further. We are priority members. Just seeking understanding.

    #71256
    Nelsont
    Member

    I do not claim to fully understand property taxes because they are all over the place with rates inclusions and exclusions. Neighboring counties within the same MSA will have different rules. My only guess is that there is an actual rate and an effective rate. The actual rate is based on the mil rate which is a percentage of the property value. The effective rate would be the actual rate plus county provided services and special exemptions like trash removal and construction. As an example my county includes trash removal, water and sewer on the tax bill and breaks out the itemized inclusions so I am actually paying my property taxes plus an extra $600 or so. A special exemption would be one time things which will increase or decrease your bill on a year to year basis. Like if a water main breaks in your neighborhood or the county re paves your streets all households in that neighborhood will be stuck with an extra say $500 for that year.

    So see if you can find out where her numbers are coming from but, that would be my guess.

    #71258
    RAnthony
    Member

    Thanks for the feedback. I reached out to get clarity and we also discussed how they got to the numbers and we are all clear now and have received our PSL.

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