State Assistance Need Standard - A1 - Mortgage
Mortgage payments qualify participants for the A1 Need Standard for State Assistance. Mortgage payments include the following:
First mortgage payments.
Second mortgage payments, regardless of why the money was obtained or how it was used.
NOTE When a second 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 shelter. Continuing charges include the following:
Bills for mortgage during foreclosure proceedings.
Payments on loans issued for the repairs of homes 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 insurance (comprehensive and collision) WHEN THE PARTICIPANT IS LIVING IN THE VEHICLE.
Shelters must be occupied by the budgetary unit.
NOTE Allow the A1 standard when the participant is TEMPORARILY not living in their shelter because it is uninhabitable.
Shelters include the following:
Motor homes
Cars (when the participant lives in the car)
Other forms of shelter
The following charges DO NOT qualify participants for the A1 Need Standard:
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)