Home Buying in Forest Hills>Question Details

Michelle Joh…, Home Buyer in Fort Sam Houston, TX

I am active duty, stationed overseas. I missed the new-homebuyer opportunity when I shipped out but still want to own something. How can I buy?

Asked by Michelle Johnson, Fort Sam Houston, TX Sat Oct 16, 2010

property while I am stationed overseas ... Property that does not require my physical presence?

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9
Hi Michelle, question is why you would want to do that. You will be shelling out a lot of money every month for a property that is difficult to maintain. If you really just want to invest in something you could consider something with a family. But as a "blind" investment -- this would be very risky indeed. Properties take work and a human being on site to keep them in good shape.

You have not missed anything. The economy is not going to magically recover in the next month or three. Wait until you come back to find something worthwhile. The certainty will pay off more than the panic driven purchase of something you cannot properly analyze.
1 vote Thank Flag Link Sat Oct 16, 2010
According to IRS publications as long as 1 spouse served overseas between 12/31/2008-5/1/2010 for 90 consecutive days in the military, foreign service or intelligence, the Federal tax credit that ended 4/30/2010 for everyone else is extended. You can find the IRS information at this webpage http://www.irs.gov/newsroom/article/0,,id=215594,00.html ,

In addition to the credit those same people eligible for the extended time receive, the recapture (takeback of the credit) that everyone else is subject to has different more lenient rules. If you PCS, for example, within the first year of purchase you still get the credit.

So for the military and others mentioned you have until 4/30/2011 to execute a binding contract to purchase that must close by 6/30/2011. You'll remember that everyone had these deadlines and then because of the backlog of mortgage applications the closing deadline was extended to 9/30/2010 - so the deadline might also be extended for the group until 9/30/2011 but don't count on it.

Are you required to occupy? Bear in mind that your residence is not the barracks where you sleep. Occupancy is more about future intention to occupy when repatriated (and where your stuff is) than actually being there when you're currently stationed overseas. However, only the IRS can definitively answer this, since in 1997 the rules about residence were re-written and re-done again in 2004 (and for that matter almost every year). The rules tax professionals follow can fill a bookcase and often professional disagree.
0 votes Thank Flag Link Fri Oct 22, 2010
When will you return? If you served 90 days during the period the tax credit was offered, you qualify untik 2011.
We can do most things electronically.
Susie

P.S I am an Air Force Brat! Thank you for serving our country!
0 votes Thank Flag Link Sat Oct 16, 2010
Hi, Michelle. You have not missed out on the opportunity as others have pointed out. However, buying a property from long distance is obviously a challenge. If you have family whom you trust to help you find the property, that will be ideal. Or if you go on leave state side, you can find a property during that time, make an offer and be under contract before you go back. Have inspections lined up with the help of your agent, and your loan application can be done electronically. Closings are done long distance routinely especially in areas with military bases. Best of luck, and thank you for your service.
Web Reference: http://YolandaHoversten.com
0 votes Thank Flag Link Sat Oct 16, 2010
As long as you were overseas for 90 days during the tax credit time period you would be eligible to obtain the tax credit until april 2011.
0 votes Thank Flag Link Sat Oct 16, 2010
Sounds like you will probably qualify for the credit. IMO. The best thing you could do would be have a trusted family member or friend view properties with a Realtor. Closing can bs sone through the mail or with a power of attorney. If you are looking in the Dallas area please don't hesitate to contact me. Thanks for your service.

RJ
0 votes Thank Flag Link Sat Oct 16, 2010
Michelle,

If you were overseas for at least 90 days while the tax credit was active then you actually have an extra year to take advantage of it. If you would like more details then please email me at Holt@ebby.com.
Web Reference: http://holtbarber.ebby.com
0 votes Thank Flag Link Sat Oct 16, 2010
Michelle;

You haven't missed out on the tax opportunity!! Active miltiary on duty can still take advantage of the tax credit until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. Both the $8,000 first-time and $6,500 repeat home buyer tax credits are included. So you still have time for the credits.

You can purchase a home with others that you trust to look at the home for you, if need be, and inspections can be done to make sure that the home is acceptable to you.
0 votes Thank Flag Link Sat Oct 16, 2010
Happy to assist you few questions

1. Do you have a family member who can represent you in home selection?
2. OR are you married where spouse can determine which home fits with family dynamics
3. I woould need to interview obtain more particulars

However we work with many families in same situation as you AND worldwide investors who may never see a property however have confidence in your professional services.

THANK YOU FOR SERVIING OUR COUNTRY !

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Oct 16, 2010
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