CONTRACTS FOR DEED AS INCOME
ISSUE DATE: 10/2016
MFIP, MSA, GA, GRH:
Count payments of a contract for deed or other property agreement as unearned income.
If the real property is encumbered by another mortgage or contract for deed and the owner of the contract is making that payment, allow a deduction for the principal and interest portion of that payment.
DWP:
Follow MFIP. After the initial DWP determination, do not count any unanticipated income the unit may receive.
SNAP:
Count all payments (including the principal portion) of a contract for deed or other property agreement as unearned income. If the owner of the contract or property agreement is paying the property taxes and/or homeowner's insurance, allow these as deductions from the payment. If the real property is encumbered by another mortgage or contract for deed, and the owner of the contract is making that payment, allow a deduction for the interest portion of that payment.
PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 05/2016 | updates section due to Legislative changes for Program Uniformity/Assets. |
| 01/2016 | in SNAP deletes the last paragraph about self-employment business expenses as they are no longer allowed. |
| 12/2014 | Removed WB. This program was suspended 12/1/14. |
| 11/2012 | update Food Support and FS to Supplemental Nutrition Assistance Program (SNAP) and FSET to SNAP E&T throughout. No policy was changed. |
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