2nd time home buyers do they need to sell their exsisting home inorder to take advantage new tax credit? Please let me know.

Asked by Payam Bakhaje, Washington, DC Fri Nov 13, 2009

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MG Residential’s answer
MG Residenti…, Agent, Washington, DC
Fri Feb 5, 2010
It does not appear that you have to sell your current home before buying a new one, you just have to use the new one as your primary residence in order to claim the $6500 tax credit.

Some people need to sell in order to qualify for (and afford) the mortgage on the new house, but if you can cover both mortgages, you are good to go.

The Federal Housing Tax Credit Website has a great Q&A page with lots of details on the credit. http://www.federalhousingtaxcredit.com/faq2.php#2

Good luck!
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Payam Bakhaje, Agent, Washington, DC
Fri Dec 18, 2009
Expands the credit up to $6500 to current Home owners purchasing before April 30th, who have used the home being sold as principal resident for five consecutive years within the last 8 years.
Web Reference:  http://DCRealtyOnline.com
0 votes
Berna Oreshan, , Tucson, AZ
Wed Nov 18, 2009
My current understanding of this new tax credit is that you do not have to sell your current home but you do need to move to the new one. I even read that they are requiring you to live in the home the night you close escrow. It is a nice incentive but I worry that there are what I refer to as "loop holes" which will not allow the tax credit and you won't know about it until after you purchase the new home.

I think that the goal of the tax credit is to save the Real Restate market in more than just first time homebuyer's price range.
0 votes
Gloria Esca…, Agent, Iowa City, IA
Wed Nov 18, 2009
My understanding is that they must use the home as a primary residence so as long as they do that and meet other criteria they do not have to sell their existing home. I am interested in other information that is more specific.
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