Mortgage
Mortgage payments are an allowable expense deduction for NA.
To receive the expense, the housing unit must be occupied by the budgetary unit or temporarily unoccupied with certain criteria. (See Unoccupied Shelter Costs for a list of criteria.) Mortgage payments include the following:
● All mortgage payments.
NOTE When a mortgage is obtained for medical expenses, treat the repayment as a shelter expense and not a medical expense.
● Home equity loan payments, regardless of why the money was obtained or how it was used.
● Interest payments.
● Payments for a connecting piece of property to a participant's home and lot, when financed by a second mortgage or other loan secured by the home and lot.
● Portions of the closing costs on a home that are identified as taxes and insurance.
● Other continuing charges that lead to ownership of the housing unit. Continuing charges include the following:
Bills for mortgage during foreclosure proceedings.
Payments on loans issued for the repair of housing units given to participants under the Homestead Act.
Personal loan payments that are secured by a lien on the property.
Charges for buying land on which a mobile home is located.
Vehicle payments when the participant is living in the vehicle.
However, a Reverse Mortgage(g) is not an allowable shelter expense deduction for NA.
The following are not allowable as part of the mortgage payment:
● Penalties for late payments, arrearages, and closing costs.
● Down payments on a home.
● Federal Housing Authority (FHA) mortgage payments made during any moratorium period granted by FHA.
● License plate fees on a vehicle that the participant is living in.