The state of Maryland has long waived the real estate property taxes for 100% disabled Veterans but there are some changes coming to that program we thought you'd like to know.
Effective October 1st in Maryland 100% disabled veterans no longer have to wait 6 -8 months after purchasing their new home to apply for the disabled veteran real estate tax waiver. In fact, you can apply and receive your credit even before you close!
This is great news on the immediate savings but even better news if the interest rate increase has pinched your budget because your lender does not need to include the tax portion of your payment when considering your mortgage pre-qualification.
Pete O'Donnell at Mainstreet Mortgage has just completed his first transaction working through the new credit and shares some tips and must know information about the program. If you're a disabled Veteran thinking about making a home purchase and would like more information about this program, you can reach Pete directly at (410) 299-2043 or vial email at Pete@MainstreetHL.com.
If you are a Veteran with a 100% disability rating, you can now apply before you purchase a home to have the property taxes waived. In the past you had to purchase the home and wait 6-8 months before you could apply. Starting 10/1/2022 the application can be sent before you close on the home.
Below is the link to apply:
What you need to know:
- You must be a Maryland resident. If you are transferring to the area and are not a MD resident, you will want to start with changing you license to MD.
- The application requires a section to be completed by the Veterans Administration. You will want to contact the local VA office to set an appointment.
- You will need a copy of your DD-214.
- You will need the most recent letter from VA providing your disability rating
- If you are already under contract to purchase a home include the 1st page of your contract. If in process of submitting a contract on a property add your name in ( ) next to the owners on the application
- Be sure to have a conversation with your lender to ensure they are able to remove the taxes from your mortgage payment at time of closing. This will ensure your payment is lower from day 1.
- Talk with your title company that will be closing the transaction for you. They will need a copy of approval from the state waiving taxes when they record the deed.
From the time you submit the application, it can take 2-3 weeks to receive a response from the State. I would recommend starting the process as soon as you submit an offer to make sure the waiver is in place at time of closing.