Alabama HB77 prohibits considering homestead ad valorem taxes in debt-to-income ratios for disabled veterans with a 100% disability rating.
Alabama HB77 requires tax assessing officials to issue tentative certificates of permanent and total disability to veterans with a 100% disability rating when applying for home mortgage loans. These certificates exempt the veterans from ad valorem taxes on their homesteads. The bill prohibits settlement agents and loan closing officers from considering these taxes when calculating the debt-to-income ratio of these veterans. This act becomes effective on October 1, 2026.
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