Home Selling in Brentwood>Question Details

Alingerf, Home Buyer in Yuba City, CA

What are the minimum time frames for living in a Homepath home and for receiving the $10k tax credit?

Asked by Alingerf, Yuba City, CA Wed Mar 7, 2012

Hello,

My husband was just offered a fantastic job in the Bay Area. The job also offers relocation assistance, where they will buy the house if it doesn't sell in three months.

My question is: We have a Homepath home that we've lived in for two years now, can we sell it? The employer will pay any penalties on the house.

We also received the $10k credit at the time, but I can't remember if there was a certain time frame that we had to live in the house. Would we just need to pay that back (which the employer would pay for)?

Also, I was wondering if this would affect our credit or affect our ability to buy another house, as the employer also offers down payment assistance.

I would greatly appreciate your expertise with Home Path homes and the $10k credit that was offered two years ago and what the time restrictions are. By the way, I know this was all spelled out in our contracts, but my hubby has it filed away. Just hoping someone can refresh my memory.=)

Thank you!

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Answers

3
You will be able to sell the home, but you will most unlikely be able to sell it as a HOMEPATH property. HOMEPATH properties are homes that have been secured by a Fannie Mae loan, and acquired by Fannie Mae through foreclosure proceedings.

i don't believe there is a requirement regarding the tax credit, but double check with your accountant.

Until the property is sold, it will affect your ability to buy another house as you will be hit with BOTH mortgage payments (current home and future home) in order to qualify. However, if your husband has sufficient income to sustain both mortgages (and other liabilities), then it may not be a problem. I can figure that one out for you. ;)

Hope this helps

Rene Joseph De Blanco
jdeblanco@kinecta.org
http://www.kinecta.org/jdeblanco
310-643-2495
0 votes Thank Flag Link Wed Mar 7, 2012
Standard owner occupied purchase requirements are that you occupy the home for at least 12 months post-closing (you'll sign a document to that effect at close).

As for the tax credit, the best person to consult is your accountant, it's tax time, you probably will do that any day now anyway.
0 votes Thank Flag Link Wed Mar 7, 2012
Homepath generally requires you to move into the home within 60 days of closing and live in the home for one year.

The tax credit required you to live in the home as your primary residence for 3 years after closing. However there are circumstances which may not force you to repay the tax credit should you not stay the mandated 3 years. You would need to talk to a tax professional who is familiar with the program to determine if your situation applies.
0 votes Thank Flag Link Wed Mar 7, 2012
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