Any currently employed police officer or fire fighter, as defined in the enabling legislation, who is a member of the Police and Firemen's Retirement System with at least 1 year creditable service. No second mortgages will be permitted. The balance of the flat fee is to be paid at closing. The fee at the time of application is not refundable unless the loan is denied by the lender for underwriting reasons. The flat fee does not include any funds for closing costs.
Borrowers are responsible for all closing costs in addition to the application fees.
It will be added directly onto the mortgage payment. Under certain circumstances closing costs may be rolled into the mortgage. The state Treasurer has obtained and is relying on an opinion from tax counsel that there is an adequate basis, in accordance with prevailing guidelines, to conclude that it is reasonable for the Police and Firemen's Retirement System to take the position that mortgages issued under this program should not be treated as taxable distributions. If it is ultimately determined that these mortgages are taxable distributions, you could be required to pay tax on the mortgage proceeds as well as penalties. We suggest you consider consulting your own tax advisor before submitting your application.