Purchases with Mortgage Financing
When there is a valid lien on the displacement property for at least
180 days
immediately preceding the initiation of negotiations, reasonable necessary costs incurred in obtaining mortgage financing to acquire replacement property may be eligible for TxDOT reimbursement. Any additional cost in securing a larger mortgage on the replacement property than existed on the displacement property is not considered a necessary expense. The following are eligible incidental expenses normally incurred by buyers of residential properties with mortgage financing:- legal, closing, and related costs, including costs incurred for title search, preparing conveyance instruments, notary fees, preparing surveys and plats and recording fees;
- lender, FHA and VA application and appraisal fees;
- loan origination or assumption fees and purchaser’s discount points that do not represent prepaid interest;
- professional home inspection, certification of structural soundness and termite inspection;
- credit report;
- owner’s and mortgagee’s evidence of title (e.g., title insurance not to exceed costs for a comparable replacement dwelling);
- escrow agent’s fee;
- state revenue or documentary stamps, sales or transfer taxes (not to exceed costs for a comparable replacement dwelling); and
- other costs that TxDOT determines incidental to the purchase and normally paid by the buyer.