Download Sf 16 Georgia Form

When filling out the SF 16 Georgia form, it's important to follow certain guidelines to ensure accuracy and compliance. Here are ten things you should and shouldn't do:

• Do double-check all figures before submitting the form.
• Do include the sales price from the contract in the acquisition cost.
• Do separate costs for land if purchased separately from the residence.
• Do ensure that any interest paid during the construction period is included.
• Do list all settlement costs accurately, including any unusual expenses.
• Don't include personal property items as part of the acquisition cost.
• Don't subtract the value of services performed by family members if they are paid contractors.
• Don't include costs for land owned for more than two years before construction starts.
• Don't forget to sign and date the form to validate your submission.
• Don't leave any sections blank; complete every required field.

There are several misconceptions about the SF 16 Georgia form that can lead to confusion. Here are seven of the most common misunderstandings:

• The form is only for first-time homebuyers. Many believe that only first-time buyers can use this form. In reality, it can be used by anyone participating in the Georgia Dream Homeownership Program.
• All costs related to the home purchase must be included. Some people think that every expense should be listed. However, only specific costs, such as those not exceeding usual amounts, should be included in the acquisition cost.
• Personal property items are always included in the acquisition cost. This is not true. Personal property items must be subtracted from the total acquisition cost, not added.
• Land owned for more than two years must be included. This is a misconception. If the borrower has owned the land for more than two years, it does not need to be included in the acquisition cost.
• Interest paid during the construction period is always included. Interest can only be included if it is not already accounted for in the acquisition cost. This means careful calculation is necessary.
• Services provided by family members must always be included. Services performed by family members do not count towards the acquisition cost if they are unpaid. Only costs for paid services should be included.
• Settlement costs are unlimited. Some may think there are no limits on settlement costs. In fact, these costs must be reasonable and cannot exceed typical amounts for similar loans.

Understanding these misconceptions can help ensure a smoother process when completing the SF 16 Georgia form.

1. What is the purpose of the SF 16 Georgia form?

   The SF 16 form, officially known as the Georgia Dream Homeownership Program Acquisition Cost Certification, is designed to help determine the total acquisition cost for a residence. This form is required when applying for the Georgia Dream First Mortgage Program. It ensures that all costs associated with purchasing a home, including the price of the property and additional expenses, are accurately reported.

2. What costs should be included in the acquisition cost?

   When calculating the acquisition cost, borrowers must consider several components. These include:

   • The total amount paid to the property seller for the residence and fixtures.
   • The cost of land if it was purchased separately within two years of the construction start date.
   • The appraised value of any gifted land received within the same time frame.
   • Interest paid during the construction period, if not included in the initial purchase price.
   • All necessary work to complete the residence, regardless of funding source.
   • Settlement costs, such as real estate transfer taxes and title insurance premiums.
   • Installation costs for manufactured housing, if applicable.

   Each of these costs contributes to the overall acquisition cost, which is crucial for determining eligibility for financing through the program.

3. Are there any costs that should not be included?

   Yes, certain costs should be excluded from the acquisition cost calculation. These include:

   • Usual and reasonable settlement and financing costs, such as title insurance and appraisal fees, which should not exceed typical amounts for similar loans.
   • The imputed value of services performed by the borrower or their family members in constructing or completing the residence.
   • The cost of land owned by the borrower for at least two years prior to the start of construction.

   Excluding these costs helps to maintain the integrity of the acquisition cost calculation and ensures compliance with program requirements.

4. What happens if the information provided is inaccurate?

   Providing inaccurate information on the SF 16 form can have serious consequences. Borrowers must declare that the information is true and correct under penalty of perjury. If discrepancies are found, it could lead to disqualification from the Georgia Dream Homeownership Program, and in some cases, legal repercussions. Therefore, it's essential for borrowers to be diligent and accurate when completing this form.

When completing the SF 16 form for the Georgia Dream Homeownership Program, individuals often make several common mistakes. These errors can lead to delays or even disqualification from the program. Understanding these pitfalls can help ensure a smoother application process.

One frequent mistake is failing to accurately compute the acquisition cost. Borrowers may overlook adding all relevant costs, such as the appraised value of the land or interest paid during the construction period. Each component must be carefully considered to avoid underreporting the total acquisition cost.

Another error involves misunderstanding the definition of a "fixture." Many applicants mistakenly classify personal property, like refrigerators or free-standing stoves, as fixtures. This misclassification can lead to incorrect calculations in the additions and subtractions sections of the form.

Additionally, some individuals forget to account for the two-year rule regarding land ownership. If the borrower has owned the land for more than two years before construction begins, they should not include its cost in the acquisition total. Ignoring this guideline can inflate the reported costs unnecessarily.

Many borrowers also fail to provide detailed information about settlement costs. They may include typical expenses without distinguishing between usual costs and those that exceed standard amounts. This oversight can result in complications during the review process.

Another common issue is not properly documenting personal property items purchased from the seller. Borrowers might neglect to subtract these amounts from the mortgage loan, leading to discrepancies in the total acquisition cost.

Furthermore, applicants sometimes miscalculate the value of services performed by family members. If these services were provided by family members without compensation, they should be subtracted from the total. However, if family members are hired as contractors, their costs should not be included in this subtraction.

Finally, signatures are often missing or incorrectly dated. All required signatures must be present and dated appropriately to validate the form. Failure to do so can result in the rejection of the application.