Surprise... You May Be Considered a First Time Home Buyer

By
Real Estate Sales Representative with Pierson Real Estate and Investments BRE 00560598

Who qualifies as a first time home buyer? That is a valid question. To answer it is important to know "who" is asking. The general definition is: Someone that has not owned a home in the past 3 years would be considered a 1st time home buyer. The word "home" becomes a key point. To prove lack of home ownership a buyer is required to provide copies of three years 1040 tax returns. Lenders, or agencies verify that no mortgage interest was deducted for those years.

But, what about the buyer that has owned real estate rental that was not the primary residence "home" for the last 3 or more years? Ironically, often that buyer does qualify for the down payment assistance. The items needed to prove the point:

* Copy of the rental agreement or lease for the primary residence

* Copy of the tax bill for the "other" property proving that it is "absentee owner".

If you are in this position, ask your lender to check with the DAP agency to see if you would qualify. Most lenders will automatically dismiss you.

If you are divorced and filed joint returns with your X using the interest deduction, again ask your lender to check with the agency providing the down payment assistance. If you can prove that during this time you maintained a separate residence, providing a copy of your lease or rental agreement you could be a winner.

Additionally, I have found that often previous home owners who have lost their homes through short sale or foreclosure often disqualify themselves as first time home buyers. The key here is the timing... If the transfer OUT of your name occurred over three years ago... you may qualify. I say may, because again it depends on the agency. Some agencies will "pro-rate" meaning go by the date on which the transfer occurred. Others want the whole year free from interest deductions before you will be considered a First Time Home Buyer and gain the extra benefits associated with the program.

The benefits include down payment assistance by various degrees and the Mortgage Credit Certificate mentioned below.

As a first time home buyer you may also qualify to have Uncle Sam apply 20% of the interest paid on your loan towards your income tax liability. For information on MCC click here.

I'm always happy to answer questions... feel free to contact me.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Buying
Location:
California
Tags:
first time buyers
down payment assistance
mortgage credit certificate
mcc

Comments 1 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
12,598
Judy Rockensock
RE/MAX Carriage House

This is a point that many agents don't realize.  It can be a very important piece of information to pass on to all buyers.  Thanks for posting.

July 11, 2011 02:44 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
57,022

Ingrid Pierson

DRE 00560598 - 800-530-9421
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Brings fresh information about Placer County lifestyle information... specializing in vineyards, vineyard homes and vineyard lifestyles. Opportunities for Home wine making, and local color and activities centered around local wineries, and venues of Auburn, Loomis and Newcastle. Additionally, with my background in lending I bring information about short sales, changes on laws and lending that impact you as the Seller and the bank approval process.