Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio

HB 396 aims to assist disabled veterans with a 100 percent permanent and total disability rating when applying for home mortgage loans. It requires County Property Tax Commissioners to issue these veterans a tentative certificate of permanent and total disability before they purchase a homestead, upon submission of specific documents. This tentative certificate allows settlement agents and loan closing officers to exclude homestead ad valorem taxes when calculating the veteran's debt-to-income ratio. The bill ensures that these veterans' exempt property taxes do not negatively impact their ability to qualify for a home loan, as the certificate becomes valid upon purchasing the homestead.