TX-001 Property Taxes in Texas
NOTICE TO ALL TEXAS ORIGINATORS
Property Taxes in Texas
FLCBank has updated Texas property tax qualifications and escrow requirements as follows:
Qualification
- Whenever possible, FLCBank will use the latest Market Value from the appraisal district for the latest available year multiplied by the latest tax millage rates available.
- No CAP Exemption can be applied on purchase loan transactions as CAP exemptions do not apply to new owners.
- If the borrower qualifies for Homestead Exemption and there is a county tax estimator available, FLCBank will apply these calculations.
- If there is no tax estimator, the worst-case scenario will be used.
- Homestead exemption will be used on primary residences whether the current owner has this exemption or not.
New Construction
If no Market Value based on the full improvements plus land is available from the appraisal district FLCBank will use the value given on the appraisal instead of the Market Value and use the qualification process above. Industry-standard calculations will be used to apply homestead exemption whenever a tax estimator is not available.
Escrows
- Escrows will be based on the lower of the qualifying figures or actual taxes.
- Payment shock letter is required to be signed by borrower/s at closing when using lower figures for escrows.
These updates are effective immediately.