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Property Tax Deferral

A property tax deferral (PTD) is a type of public sector reverse mortgage, offered by certain state and local government agencies. Property tax deferral loans are provided through annual advances, and are only used to pay property taxes. If you take out a PTD loan, you will not be required to repay it for as long as you remain in your home.

Property tax deferrals are generally limited to the amount of your property tax for the current year. Some programs pay a portion of the property tax bill or a set amount of the bill. With other programs, the advances can only be used to pay special assessments. Most property tax deferral lenders do not permit borrowers to take out a PTD loan at the same time as another type of reverse mortgage loan.

If you are looking for a property tax deferral, you may contact the local government agency that collects your property taxes. Eligibility requirements often depend on location, age, and income. Property tax deferral eligibility requirements vary greatly, depending on the program. PTD loan interest rates are usually fixed and charged as simple interest. Property tax deferral loans do not typically charge origination fees or insurance premiums and have low to no closing costs.