Information Obtained from PBCGOV.ORG
Exemptions reduce the assessed value of your property, thereby reducing the amount of property tax you pay. If your property is your permanent residence, or homestead, you may be eligible for a tax exemption
THE HOMESTEAD EXEMPTION
In the state of Florida, a $25,000 exemption is applied to the first $50,000 of your property’s assessed value if your property is your permanent residence and you owned the property on January 1 of the tax year. This exemption applies to all taxes, including school district taxes. An additional exemption of up to $25,000 will be applied if your property’s assessed value is between at least $50,000 and $75,000. This exemption is not applied to school district taxes. ** Homestead Exemption also qualifies you for the 3% Cap Save our Homes (SOH)
When qualifying for the Homestead Exemption, you will need the following documents for all property owners applying:
Documents should reflect the address of your homesteaded property.
How do I apply?
You have three options to submit your application:
All homestead exemption applications must be submitted by March 1.
Do I need to reapply for a homestead exemption every year?
No. We will renew your homestead exemption annually as long as you continue to qualify for the exemption. After January 1 of each year, we will send you a homestead exemption receipt by mail to confirm the renewal. You must contact us if you no longer qualify for the exemption. This may occur because the property is being rented or is no longer your permanent residence, or there is a change in ownership due to a sale, marriage, divorce, death. Failure to notify us could result in a homestead tax lien with a substantial penalty and interest. A change in exemption status does not necessarily mean that your taxes will increase. Please call or email our office so we can help you understand your options.
If you receive a homestead exemption, you may be eligible for additional exemptions or discounts. The application deadline for all exemptions is March 1.
Rental of a Homesteaded Property*
You may rent your homesteaded property for 30 days or less per calendar year and maintain a homestead exemption. Rental for more than 30 days for two consecutive years or for more than six months constitutes abandonment of a homestead exemption.
Exempt property rented after January 1 of any year does not affect the homestead exemption for that particular year. If the property is rented on January 1 of the following year or the terms of the lease are six months or more the exemption will be denied.
Property owners are required to notify the Property Appraiser’s Office when their property no longer qualifies for exemption. Failure to do so could result in a Homestead Tax Lien with substantial penalty and interest.
*Florida Statute 196.061 and 196.011 (9) (a).
Please call our Exemption Services at 561.355.2866 for more information.
** What is the 3% Save Our Homes Cap (SOH)
In 1994 the State of Florida established a 3% Save Our Homes Cap (SOH) assessment limit on all residential properties that receive a homestead exemption. The 3% SOH Cap limits any increase to the assessed value of a homestead exempt property for tax purposes to a maximum of 3% each year or the amount of the change in the Consumer Price Index, whichever is lower.
Properties are assessed at the Fair Market Value when a change of ownership occurs and in the first year it receives the homestead exemption. Once the exemption is applied for, the cap or base year is established, each year thereafter, the SOH cap applies. The 3% SOH Cap remains in effect as long as the property is homestead exempt or until the property is sold.
When the Fair Market Value of a property assessed under the 3% SOH Cap drops below the 3% value the property is assessed at the lower of the two.
The Taxable Value for a homestead exempt property is the assessed value minus the amount of the exemption or exemptions granted the property owner.
For more information, please call Exemption Services at 561.355.2866.
** This Information copied from: https://www.pbcgov.org/papa/homestead-exemption.htm
Debt-to-Income Ratios (DTI)
It’s all about your ratios. When you apply for a loan the lender attempts to determine if you have the ability to pay back the loan. One way they do this is by looking at your debt-to-income ratios (DTI). Without getting too complicated, your debt-to-income ratio is the percentage of your gross monthly income that is spent on monthly debt payments like credit cards, student loans, car loans, child support and mortgage payments. Just like your credit score, your student loans impact your ability to qualify for a loan from any kind of lender.
For all student loans, whether deferred or not, in forbearance, or in repayment, a monthly payment must be used when qualifying the borrower. To determine the monthly payment the lender will use, follow the points below.
Lenders will use the monthly amount provided on the credit report. If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment (which may be the case for deferred loans or loans in forbearance), the lender must calculate a qualifying monthly payment using one of the options below:
** For student loans associated with an income-driven repayment (IDR) plan, even if the payment is $0, this can be used to qualify the borrower only if the loan is not in deferment.
For student loans in repayment, use the greater of:
Student loans in deferment or forbearance, use the greater of:
Regardless of the payment status, the Mortgagee must use either:
1. The greater of:
A. 1 percent of the outstanding balance on the loan
B. or the monthly payment reported on the borrowers credit report
2. or the actual documented payment, provided the payment will fully amortize the loan over its term.