Buying A Home
Sweet Sadie Mae
member
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
question!
OK DH and I own a home and we got the new homeowners tax refund or whatever it is that you got so much back from taxes but you have to live in the home for 3 years or else you have to pay it back. It's a 2 bedroom and way too small for our small family. We found a home today that we are going to at least look at (we peeked in the windows and it is awesome!). What happens if we want the house? Our tax thingy is up in the beginning of March on our house, which isn't too far away. Do banks give you a hard time if you take out a second home loan? And what if it takes forever to sell the house we're in now? Is this a gamble?! Ughh I want that house!
Re: question!
I don't know anything about that tax situation but we purchased a house at the same time as owning a condo. Since we were living in the condo, it wasn't rented out so they had to include it in our income to debt ratio. It was no big deal since our income was way over our debt. If you are close or over then the bank won't approve the financing.
After we purchase the house, we re-fi'ed about a year after. I had my condo rented out at that time. The bank requested the lease just to make it easier. It was no problem the second time around either.
This is a huge gamble if you can't afford the condo/house mortgage. Even if you can afford, if you are on the line of comfortable then I would rethink your decision.
We own more than one home. Our experience with getting a second mortgage is that most lenders do not allow for rental income to be included as "income" on your debt:income ratio until you have a 12+ month history of rental income. We had to show that we had 6 months reserves to cover both mortgages to qualify.
As for the tax implication on your current home, no idea.
My Valentine Bookends (2~13~13, 2~15~09)
My Chart My Nest Bio
This. It doesn't matter if you actually sell the property... once it is no longer your primary residence (i.e. you buy and move) you need to repay the credit. One thing most people do not know is you only have to repay the gain on the sale up to $8k. If you lose money, you do not have to repay. Very basically: Say you purchased for $100k and recieved the $8k credit then your basis is $92,000. If you sell for less than $92,000 you do not have to repay. If you sell for $95,000 then you have to repay $3,000 (95-92). You should talk to your CPA though because you can include expenses to sell to calulate your gain/loss.