Housing (Mortgages)

SB 244 increases the fee paid when recording home loans, deeds of trust, or similar property security instruments in Alabama. The bill modifies how this fee revenue is distributed, directing all proceeds to the Alabama Housing Trust Fund instead of general state funds. This change affects anyone recording such property-related financial instruments (like homebuyers or lenders), with the new revenue specifically funding housing programs. The fee amount itself remains unchanged (30 cents per $100 of debt), but the destination of the funds is now dedicated to housing. The bill makes no changes to the fee calculation method or the instruments subject to the fee.

HB 401 increases the mortgage recording fee in Alabama from $0.30 to $0.45 for every $100 of loan amount on mortgages, deeds of trust, and similar instruments. This fee change directly affects borrowers, lenders, and title companies when recording property-related financial instruments. The bill redirects the additional revenue to the Alabama Housing Trust Fund, which supports affordable housing programs. The change modifies existing fee structures without altering the fundamental process of mortgage recording.

This bill requires Alabama tax officials to issue a "tentative certificate" to disabled veterans with a 100% VA disability rating who provide proof of their rating, a home purchase agreement, and an affidavit confirming the property will be their primary residence. It prohibits lenders and settlement agents from including homestead property taxes in these veterans' debt-to-income ratio calculations when processing mortgage applications. The certificate allows eligible veterans - who already qualify for homestead tax exemptions under existing law (Sections 40-9-19/21) - to avoid having their property tax burden counted toward loan eligibility. This change directly affects disabled veterans with 100% VA disability ratings seeking home loans in Alabama.

HB 77 helps disabled veterans with a 100% VA disability rating by streamlining their access to property tax exemptions when applying for home mortgages. The bill requires tax officials to issue a "tentative certificate" of disability exemption upon receiving basic documentation (like VA disability proof and purchase agreements) within 20 days. It also prohibits lenders from including homestead property taxes in a veteran’s debt-to-income ratio calculation when processing their mortgage application. This directly affects veterans seeking home loans who qualify for Alabama’s homestead tax exemption. The law takes effect October 1, 2026.