The SF 16 Georgia form, officially known as the Georgia Dream Homeownership Program Acquisition Cost Certification, is a vital document for individuals engaging in the Georgia Dream First Mortgage Program. It is meticulously structured to calculate the acquisition cost of a property, which encompasses both the land and dwelling, through a series of additions and subtractions. This document must be submitted alongside the purchase package and is carefully designed to ensure compliance with the program's cost parameters.
The Georgia Dream Homeownership Program offers a glimpse into opportunities for aspiring homeowners to make their dream a reality, facilitated by the SF 16 Georgia form, known as the "Acquisition Cost Certification." This documentation is a crucial part of the purchase package exclusively for the Georgia Dream First Mortgage Program. It encompasses a comprehensive methodology for calculating the acquisition cost which includes not only the cash payment to the seller for the residence, its fixtures, and land but also additional elements that contribute to the total cost. These elements range from the cost of land purchases separately, the appraised value of gifted land, interest paid during construction, to expenses related to settlement and financing costs that surpass standard amounts. The form further deducts the value of personal property purchased from the seller and the imputed value of services rendered by the borrower or family members in the construction or improvement of the residence, arriving at a net total acquisition cost. This detailed approach ensures accuracy and compliance with program guidelines, emphasizing the form's significance in maintaining the integrity of the Georgia Dream Homeownership Program. With mandatory fields for borrower and seller information and a declaration under penalty of perjury, the form underscores the responsibility of all parties to provide truthful and accurate information, laying the foundation for a transparent and equitable homeownership process in Georgia.
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
Filling out the SF 16 Georgia form is a critical step for those participating in the Georgia Dream Homeownership Program. This form facilitates the certification of the acquisition cost associated with purchasing a home under the Georgia Dream First Mortgage Program. Accuracy and attention to detail are paramount when completing this document, as the information provided will be used to determine eligibility and compliance with program requirements. The instructions provided here are intended to guide you through each section of the form to ensure it is filled out correctly and completely.
Once completed, review the form thoroughly to ensure all information is accurate and corresponds with the supporting documents. Submit the form along with the purchase package to the appropriate department as specified in the Georgia Dream Homeownership Program guidelines. Timely and precise completion of this form is necessary to ensure a smooth process towards securing your dream home.
What is the SF-16 Georgia form?
The SF-16 Georgia form, also known as the Georgia Dream Homeownership Program Acquisition Cost Certification, must be submitted with the Purchase Package for those participating in the Georgia Dream First Mortgage Program. It's a detailed document that helps in calculating the total acquisition cost of a property, factoring in various additions and subtractions as outlined by specific guidelines. This calculation includes the cost of the land, dwelling, construction interests, among other expenses.
Who needs to fill out the SF-16 form?
Both the borrower and the property seller are required to fill out and sign the form. It's essential for participants of the Georgia Dream First Mortgage Program who are in the process of acquiring a home. Detailed information from both parties ensures accurate calculation of the property's acquisition cost.
What information is required for the SF-16 form?
The form requires detailed information including the price paid for the residence and land, cost of land if purchased separately, appraised value of gifted land, interest paid during construction, and various settlement and installation costs. The form also necessitates details on subtractable items like personal property and the value of services performed by the borrower or family members.
Are there any exclusions in the acquisition cost calculation?
Yes, certain costs are excluded from the total acquisition cost calculation. These include usual and reasonable settlement and financing costs, the imputed value of services performed by the borrower or family members, and the cost of land owned by the borrower for at least two years before the construction start date.
What are fixtures and personal property in the context of the SF-16 form?
For the purposes of the SF-16 form, fixtures refer to items that are affixed to the real estate and intended to be part of the property during its useful life, such as built-in appliances. Personal property includes movable items like refrigerators and free-standing stoves, which aren’t considered fixtures and must be subtracted from the acquisition cost calculation.
How do settlement and financing costs factor into the acquisition cost?
Settlement and financing costs can be included in the acquisition cost but only if they exceed the usual and reasonable amounts for a similar loan not financed with tax-exempt bonds. These costs encompass a wide range of expenses from transfer taxes and recording fees to legal fees and appraisal expenses.
Is it mandatory to subtract the value of services performed by the borrower or family members?
Yes, it’s mandatory to subtract the value of services performed by the borrower or their family members from the total acquisition cost. This ensures that the calculation reflects only the monetary investment into the property, excluding labor costs that were not paid for.
What happens if incorrect information is provided on the SF-16 form?
Providing incorrect information on the SF-16 form is taken seriously, as it’s material to the Georgia Department of Community Affairs. Declaring false information is considered perjury, a felony offense in the State of Georgia, emphasizing the importance of accuracy and truthfulness in completing this form.
Filling out forms for any program, particularly those associated with home ownership like the Georgia Dream Homeownership Program, requires attention to detail. Unfortunately, some common mistakes can lead to delays or issues in the application process. Here are four typical errors individuals make when completing the SF 16 Georgia form:
Incorrectly calculating the acquisition cost: The form clearly outlines how to compute the acquisition cost by adding various expenses such as the cash paid to the property seller, the cost of land if bought separately, and settlement costs, among others. Applicants sometimes skip or miscalculate these costs, leading to an inaccurate total acquisition cost. It's important to carefully add each component listed under "Additions" and subtract any relevant items under "Subtractions" to get the correct total.
Omitting details about personal property: The form requires subtracting the value of personal property items that are expected to be purchased from the Property Seller, which are not considered fixtures. A common mistake is to forget to list these items or misunderstand what counts as personal property versus fixtures. Remember, items like freestanding appliances are not fixed to the property and should be considered personal property.
Not specifying settlement and financing costs properly: Under "Additions," item 6 mentions settlement and financing costs such as transfer taxes, recording fees, and legal fees, but only those that are above the usual and reasonable amounts. Applicants often mistakenly include regular settlement and financing costs or fail to specify unusual costs. Be sure to only add those additional amounts that truly exceed what would be typical for a similar loan.
Overlooking the importance of the certification section: Towards the end of the form, it's required to certify that all the provided information is accurate under penalty of perjury. Sometimes people rush through this part without fully understanding the seriousness of this declaration. Always review your information thoroughly before signing to ensure everything is true and correct to the best of your knowledge.
By avoiding these mistakes, applicants can improve their chances of a smooth and successful application process for the Georgia Dream Homeownership Program.
When navigating the path to homeownership through the Georgia Dream Homeownership Program, understanding and preparing the right documents is crucial. The SF 16 Georgia form, also known as the Georgia Dream Homeownership Program Acquisition Cost Certification, plays a vital role in the purchase package. However, to ensure a smooth process, a few other forms and documents often accompany the SF 16 form, each serving a specific purpose in completing your journey to owning a home.
Together, these forms and documents create a roadmap for the Georgia Dream Homeownership Program. While the SF 16 form certifies the acquisition costs, the additional documents ensure the applicant's eligibility, the property's value, and the clarity of the financial obligations involved. Proper preparation and understanding of each document can significantly ease the home-buying process, bringing you one step closer to your dream home.
The SF-16 Georgia form is similar to several other documents used in the real estate and mortgage process. These forms are designed to certify various components of a property purchase, ranging from the overall acquisition costs to specificity regarding fixtures and personal property distinctions. Each form serves a vital role in ensuring clarity and legality in real estate transactions.
Good Faith Estimate (GFE): Like the SF-16 Georgia form, the Good Faith Estimate was a document that provided borrowers with detailed information about their mortgage terms and costs before closing. Although it has now been replaced by the Loan Estimate form, the GFE shared a common goal with the SF-16: to ensure transparency in the costs associated with purchasing a home. Both documents break down the expenses into detailed categories, but the SF-16 is more focused on acquisition costs within the specific context of the Georgia Dream Homeownership Program.
HUD-1 Settlement Statement: The HUD-1 Settlement Statement is another document that bears resemblance to the SF-16 Georgia form in structure and purpose. Prior to being phased out by the Closing Disclosure form, the HUD-1 was used to itemize all charges imposed on borrowers and sellers during real estate transactions. Similar to the SF-16, the HUD-1 detailed costs such as real estate transfer taxes and title insurance premiums. However, the SF-16 specifically adjusts these costs to reflect the nuances of financing with tax-exempt bonds, which is a unique aspect of the Georgia Dream Homeownership Program.
Uniform Residential Loan Application (URLA): Although the URLa primarily functions as an application for residential mortgage loans, it shares common elements with the SF-16 Georgia form. Both documents collect detailed information regarding the property and parties involved in the transaction. The SF-16, however, extends beyond the scope of the URLA by offering a detailed breakdown of the acquisition cost, including adjustments for personal property and donated services, which are not typically covered in the URLA.
When completing the SF 16 Georgia form, which pertains to the Georgia Dream Homeownership Program's Acquisition Cost Certification, attention to detail and accuracy is imperative. To guide you through this process, here is a list of things you should and shouldn't do:
By following these guidelines, applicants can ensure a smoother and more accurate submission process for the SF 16 Georgia form, facilitating their participation in the Georgia Dream Homeownership Program.
When it comes to the Georgia Dream Homeownership Program and the accompanying SF-16 form, several misunderstandings can lead to confusion for potential participants. Here, we aim to clarify these misconceptions to provide a clearer understanding of the program and form requirements.
Having a clear understanding of these points can demystify the process of filling out the SF-16 form for potential participants in the Georgia Dream Homeownership Program. Accurate information ensures that applicants can navigate the application process more smoothly and effectively.
Understanding how to properly complete and utilize the SF-16 Georgia form is crucial for participants in the Georgia Dream Homeownership Program. Here are five key takeaways to ensure accuracy and compliance:
Proper completion of the SF-16 Georgia form ensures compliance with the Georgia Department of Community Affairs and facilitates the processing of applications under the Georgia Dream Homeownership Program. Paying close attention to the details and exclusions outlined in the form is essential for a successful application.
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