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Little tip for those going USDA Direct/low income buyers

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I had no idea this was an option, since nobody advertises it, I'm sure. However, at least in MI (check with your local city or twp), if you meet income qualifications you can get a "Poverty Exemption" to your property taxes. We just filed with our township and were approved for 2012 winter taxes and 2013 summer. Depending upon your income, bills and other factors on a several-page application, the twp board makes a decision on what taxes you can afford. Our winter taxes were $2021 before the exemption. After the exemption our winter bill is $120. We turned this new bill and poverty exemption approval in to USDA and it reduced our monthly house payments by almost $200, plus we had an escrow surplus (since we'd been paying in since July) of over $800. We asked them to apply it to our December payment and, thus, skipped our payment for this month. This is an extremely helpful break to our monthly finances.


Obviously it won't help you get into a bigger house, etc, since you have to have already bought the house to apply. So, it's not some neat trick to scam anybody. But, if you do need a little break for a year or 2 in order to make your mortgage payments, this is very helpful.

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