E Mortgage
(04/01/13 – 06/30/13)
Mortgage payments are an ALLOWABLE expense deduction for NA, and affect the CA payment standard. To receive the expense, the housing unit must be occupied by the budgetary unit. When the housing unit is not occupied by the budgetary unit, see Unoccupied Shelter Costs. Mortgage payments include the following:
All mortgage payments, regardless of why the money was obtained or how it was used.
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.
Vehicle insurance (comprehensive and collision) when the participant is living in the vehicle. (See Shelter Insurance for keying instructions)
A Reverse Mortgage(g) is not an allowable expense deduction for NA and does not affect the CA payment standard.
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.
For procedures regarding verification of mortgages, see Shelter Expense Verification.
Key the expense on EXPC using the MO Expense Code.