What are non-disclosure states?
While most information concerning property transactions is available for public access, some states (or counties within states) consider the sale value to be private and confidential information. However, they do provide property information and ownership transfers with loan amounts and / or mortgage transfer taxes. In these states, standard practice is to estimate the sale amount by applying a calculation to the mortgage value for sales (not refinances). This formula is based upon a careful study of millions of sales and the ratio of the purchase price to the mortgage amount.
The values that result from this calculation are estimates. While on average they differ only slightly from the actual sale amount, for any individual property the calculated value may differ substantially from the actual sale amount.
Which states are non-disclosure states?
- New Mexico
- North Dakota
How is the sales amount calculated?
Where a loan amount is supplied on a new sale, depending on the type of mortgage, we multiply it by the following value:
- Mortgage FHA Amount multiplied 1.01
- Mortgage VA Amount multiplied by .98
- Mortgage Conventional Amount multiplied by 1.33
On a $100,000 mortgage this would yield estimated transaction values of:
Over time, as lending practices change, these calculations may change.
The definitions for the mortgage types are:
FHA - (Federal Housing Administration) - A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.
VA - Housing loans - (Veteran's Administration) - Housing loans to veterans by banks, savings, and loans, or other lenders which are insured by the Veteran's administration, enabling veterans to buy a residence with little or no down payment.
Conventional - A mortgage or deed of trust not obtained under a government insured program, such as FHA or VA.