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The Initial Application Certification SFH106 (5-25) has been revised to reflect the new sales price limit of $544,233. The form is available on Lender Online and must be used on all loans with reservations made on or after May 1, 2025. |
Notice of Recapture Tax Forms-Revised
- Notice of Recapture Tax SFH 126 (5-2025)
- Notice of Recapture Tax MCC 010 (5-2025)
MSHDA has revised the Notice of Recapture Tax Forms. Any MSHDA programs that are funded with tax-exempt bonds are subject to Federal Recapture Tax. Please note the MI 10K DPA is now required to be included in the federally subsidized amount on the Notice of Recapture Tax form. This requirement applies only to the following MSHDA homeownership programs:
- MI Home Loan First Mortgages
- MI 10K DPA
- Mortgage Credit Certificate (MCC)
The new forms provide additional information to the borrower regarding recapture tax and will require the lender to complete information such as street address, county, loan closing date, the federally subsidized amount for all applicable loans and whether the property is in a targeted or non-targeted area. To streamline the process for lenders, the revised form also incorporates all updated 2025 Federal Recapture Tax Income Limits for the entire state. The lender is no longer required to determine the correct Federal Recapture Tax Income limits.
The updated forms are on Lender Online and available for immediate use. The Recapture Tax FAQ and How to Complete Recapture Tax Forms PowerPoint will be available soon.
Lenders may implement the use of the new 2025 Recapture Tax forms on loans closed prior to the new effective date of May 31, 2025. Loans closed prior to May 31, 2025, should use the previous 2024 Recapture Tax form and the 2024 income limits.
The new Recapture Tax Reimbursement form is to be used by borrowers who are seeking reimbursement of their paid recapture tax to the IRS. The form will help facilitate reimbursement requests and provide clear guidance to the borrower on how to request reimbursement. The Recapture Tax Reimbursement Request SFH 127 is available on Lender Online and may be given to the borrower upon request.
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