The Sf 16 Georgia form is a crucial document required for the Georgia Dream Homeownership Program, specifically designed to certify the acquisition costs associated with purchasing a home. This form must be submitted alongside the purchase package for the Georgia Dream First Mortgage Program, ensuring that all necessary financial details are accurately reported. Understanding how to complete this form is essential for prospective homeowners looking to benefit from this program.
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The SF 16 Georgia form plays a crucial role in the Georgia Dream Homeownership Program, particularly for those seeking to secure a first mortgage. This form is designed to certify the acquisition costs associated with purchasing a home, ensuring that all financial aspects are transparently accounted for. It requires borrowers to detail various costs, including the amount paid to the property seller, the cost of land if acquired separately, and any interest paid during the construction period. Additionally, it addresses the appraised value of gifted land and settlement costs, which can include real estate transfer taxes and title insurance premiums. The form also outlines specific deductions, such as the value of personal property items and services provided by family members in the construction or improvement of the residence. By accurately completing this form, borrowers can demonstrate compliance with program requirements, ultimately helping to facilitate their path to homeownership.
Georgia Dream Homeownership Program
Acquisition Cost Certification
(Submit with Purchase Package – Georgia Dream First Mortgage Program Only)
Borrower:
Property Seller:
Address:
Street
City
State
Zip
A.Compute the acquisition cost of the land and dwelling as follows:
Additions
1.
Amount paid, in cash or in kind, by the Borrower to or for the benefit of the
$
Property Seller for the residence, all fixtures and all land. (See Item 2 if land is
acquired separately from residence and fixtures). (Enter Sales Price from
contract on line 1)
2.
Cost of land on which the residence is or will be located (if purchased separately
within 2 years of construction start date and not included in Item 1 above).
NOTE: Land owned for more than 2 years by Borrower need not be included.
3.
Appraised value of land on which the residence is or will be located (if received
as a gift within 2 years of construction start and if obtained by the donor within
the same 2 year period). NOTE: If the donor obtained the property prior to the 2
year period, the value of the land need not be included.
4.
Interest paid during construction period (if not included in Item 1 above).
5.
Cost of all other work necessary to complete the residence (regardless of source
of funds or intention to complete).
6.
Settlement costs including real estate transfer taxes, recording fees, title
insurance premiums, survey fees and other similar costs or financing costs
including credit reference fees, legal fees, appraisal expenses or points. Amounts are included here only if they are over and above the usual and reasonable amounts for these expenses for a similar loan not financed with tax-exempt bonds. Specify:
7.
Installation cost of manufactured housing; including costs of transportation,
anchorage, utility hook-ups and similar items (if not included in Item 1 above).
8.
Leasehold Mortgages Only: The capitalized value of the ground rent (formula to
be provided by your lender).
Subtotal of Additions
Subtractions
9.Personal Property items expected to be purchased from the Property Seller(s), other than fixtures; see first “NOTE” below. (This amount also must be subtracted from the mortgage loan amount).
Items of Personal Property
Value
10. The value of services performed by the Borrower(s) or donated by family
members (parents, brother(s) and/or sister(s) [whole or half blood], spouse,
ancestor and lineal descendants) in constructing, improving or completing the
residence. (If family members are hired as paid contractors, the costs of those
services included in “ADDITIONS” are not subtracted and may be financed
with the proceeds of the mortgage loan).
Subtotal of Subtractions
Total Acquisition Cost
(Value Net of Additions and Subtractions)
Page 1 of 2
FORM SF-16
Version: March 2011
NOTE: A “fixture” is property that is affixed to real estate, which the Borrower(s) intend(s) (i): to keep so affixed during its useful life, and (ii) to be part of the real estate. Refrigerators, free-standing stoves, washer and dryers, unless actually built into the residence, are considered to be personal property and not fixtures.
NOTE: The acquisition cost of a Single Family Dwelling does not include:
(1)Usual and reasonable settlement and financing costs; “Settlement Costs” include titling and transfer costs, title insurance, survey fees and other similar costs; and “Financing Costs” include credit reference fees, legal fees, appraisal expenses, points which are paid by the Borrower, or other costs of financing the residence. Such amounts must not exceed the usual and reasonable costs which otherwise would be paid for in a similar loan,
(2)The imputed value of services performed by the Borrower or members of his family (which include only the Borrower’s parents, brother(s) and/or sister(s) [whether by whole or half blood], spouse, ancestors and lineal descendant(s) in constructing or completing the residence, or
(3)The cost of land which has been owned by the Borrower for at least 2 years before the date on which the construction of the structure comprising the Single Family Residence begins.
B.To the best of our knowledge, all of the land sold with this residence reasonably maintains the basic livability of the residence.
I fully understand the information set forth above is material to the Georgia Department of Community Affairs and declare under penalty of perjury, which is a felony offense in the State of Georgia that the above information is true and correct.
Subject Property Address: ________________________________________________________________
__________________________________________________________________ , Georgia
Borrower’s Signature
Date
Co-Borrower’s Signature
Property Seller’s Signature
I further certify that the real estate on which the home is located does not provide a source of income to the borrower.
______________________________________________________
________________________________
Co Borrower’s Signature
Page 2 of 2
Completing the SF 16 Georgia form is an important step in the Georgia Dream Homeownership Program. This form helps determine the acquisition cost of your new home, which is essential for the financing process. Follow these steps carefully to ensure that you fill out the form accurately.
Once you have completed the SF 16 form, review it for accuracy before submitting it with your purchase package. This will help facilitate the financing process and ensure you meet the requirements of the Georgia Dream Homeownership Program.
The SF 16 Georgia form is a certification document used in the Georgia Dream Homeownership Program. It is required when applying for a first mortgage through this program. The form helps to compute the acquisition costs associated with purchasing a home, including land and necessary improvements.
Both the borrower and the property seller must provide information on the SF 16 form. The borrower is the individual or individuals applying for the mortgage, while the property seller is the person or entity selling the home.
The form requires details such as:
To determine the total acquisition cost, follow these steps:
"Additions" include costs related to the purchase and construction of the home, such as the sales price, land costs, and settlement costs. "Subtractions" consist of personal property items being purchased from the seller and the value of services performed by family members in constructing or completing the residence.
A fixture is a property item that is permanently attached to real estate. Examples include built-in appliances or light fixtures. Items like refrigerators or free-standing stoves are typically considered personal property unless they are built into the home.
Yes, the acquisition cost does not include:
Providing false information on the SF 16 form can lead to serious consequences. It is considered a felony offense in Georgia, and individuals may face penalties, including legal repercussions. It is crucial to ensure all information is accurate and truthful.
The completed SF 16 form should be submitted with the purchase package to the lender as part of the application process for the Georgia Dream Homeownership Program. Ensure that all required signatures are included before submission.
Incomplete Information: Failing to provide all required details can lead to delays. Each section must be filled out completely, including borrower and seller information.
Incorrect Calculation of Acquisition Costs: Errors in adding or subtracting costs can result in inaccurate totals. Ensure that all additions and subtractions are calculated correctly and clearly documented.
Misunderstanding of Fixtures: Confusing personal property with fixtures can lead to incorrect reporting. It is essential to identify which items are considered fixtures and which are not.
Omitting Required Signatures: Not obtaining all necessary signatures can invalidate the form. All parties involved must sign and date the document where indicated.
Failure to Review for Accuracy: Submitting the form without a thorough review can result in overlooked mistakes. Double-check all entries for accuracy before submission.
When applying for the Georgia Dream Homeownership Program, the SF 16 form is just one of several documents you may need. Each of these forms plays a critical role in ensuring that your application is complete and compliant with program requirements. Below is a list of other forms and documents that are commonly used alongside the SF 16 Georgia form.
Each of these documents plays a vital role in the home-buying process. Being prepared with the right paperwork can streamline your experience and help you secure your dream home in Georgia. Always consult with a knowledgeable professional if you have questions about any of these forms or need assistance in completing them.
The SF 16 Georgia form shares similarities with the HUD-1 Settlement Statement. Both documents are essential in real estate transactions, detailing the costs associated with purchasing a property. The HUD-1 outlines all settlement charges, including loan fees, title insurance, and other expenses. Similarly, the SF 16 itemizes acquisition costs, such as land, construction expenses, and settlement costs. Both forms aim to provide transparency to borrowers, ensuring they understand the financial obligations tied to their home purchase.
Another document comparable to the SF 16 is the Loan Estimate (LE) form. The LE is provided by lenders to give borrowers a clear understanding of the loan terms and estimated closing costs. Like the SF 16, it breaks down various costs, helping borrowers prepare financially. Both documents serve to inform the borrower about the total financial commitment required, although the LE focuses more on loan specifics while the SF 16 emphasizes acquisition costs.
The Closing Disclosure (CD) is also similar to the SF 16 form. This document is provided to borrowers before closing and outlines the final terms of the loan and the closing costs. Both the CD and the SF 16 ensure that borrowers are aware of all costs involved in the transaction. The CD includes a detailed account of all charges, while the SF 16 specifically computes acquisition costs, making both documents crucial for a comprehensive understanding of the financial landscape of homeownership.
The IRS Form 1098, Mortgage Interest Statement, is another document that bears resemblance to the SF 16. While the 1098 focuses on reporting mortgage interest paid during the tax year, it complements the SF 16 by providing financial information relevant to homeownership. Both documents play a role in the overall financial management of owning a home, with the SF 16 detailing initial costs and the 1098 addressing ongoing financial responsibilities.
Lastly, the Form 4506-T, Request for Transcript of Tax Return, is similar in that it may be utilized during the home buying process to verify income. While the SF 16 focuses on acquisition costs, the 4506-T helps lenders assess a borrower's financial stability. Both documents are integral in ensuring a thorough evaluation of a borrower’s financial situation, ultimately aiding in the decision-making process for home financing.
When filling out the SF 16 Georgia form, there are important dos and don'ts to keep in mind. This will help ensure that your application is completed correctly and efficiently.
Misconceptions about the SF 16 Georgia form can lead to confusion and errors in the home-buying process. Here are seven common misconceptions along with clarifications.
Understanding these misconceptions can help ensure that the SF 16 form is completed accurately, which is crucial for a smooth home-buying experience in Georgia.
Here are key takeaways about filling out and using the SF 16 Georgia form: