We did the first time home owners loan when we bought our house in 2008. When is the earliest we can sell without owing a ton of money up front?

Asked by Rlm94050, Olathe, KS Tue Jul 16, 2013

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9
Luanne Reeves, Agent, Town of Johnson, VT
Tue Jul 16, 2013
It really depends upon which type of first time homebuyer program you participated in. If it was the program where you are making a payment yearly with your taxes, there are circumstances where the loan does not have to be paid back. For example, If you look at IRS form 5405, you do not have to pay the loan back if you do not realize a profit from the sale of the home.
1 vote
Steve Hulme, Agent, Overland Park, KS
Tue Jul 16, 2013
Do you have copies of the closing documents you signed at closing? If so I would be happy to meet with you to review your original documents to help answer your question. Give me a call at 913-707-3800 and we can set something up.
0 votes
Luanne Reeves, Agent, Town of Johnson, VT
Tue Jul 16, 2013
IRS Form 5405 is pretty clear about determining whether or not you have to repay the balance of the loan, but Brian is right. The bottom line is that this is a tax question.
Luanne Reeves
Keller Williams Realty, Diamond Partners, Inc.
KS Bar #15308
Mo Bar #44745
0 votes
Rlm94050, Home Buyer, Olathe, KS
Tue Jul 16, 2013
Bryan,

So I can sell my home now, but no matter what I have to pay back the remaining amount? Is there any way around it? I am not sure if we will make much off of our house. If we dont have a significant gain on our house, would we have to repay it? I read through the guidelines you sent my but some of it is so confusing to me. What about if we rent?

Also, we have to pay the whole amount up front? There is no way around doing payment plans?
0 votes
Bryan, thank you! You have been more than helpful. It never hurts to ask, right?
Flag Tue Jul 16, 2013
Unfortunately you'd have to ask a Tax Professional for the specifics. As I understand it, if you make any profit on the sale of the home you're responsible for repayment of the $7,500 minus what you've already paid in 2010 & 2011. But taxes are outside of my scope of practice so I'll recommend you contact a CPA for the spcifics.
Flag Tue Jul 16, 2013
Bryan Tobias…, Agent, Overland Park, KS
Tue Jul 16, 2013
Please read the relevant page on the IRS website about the repayment. The three year time frame ONLY applies to homes purchased in 2009 & 2010. If you sell your house after getting a tax credit in 2008 within 15 years you'll have to repay the remaining credit balance. See a link to the IRS repayment guidelines below.
0 votes
Bryan,

So I can sell my home now, but no matter what I have to pay back the remaining amount? Is there any way around it? I am not sure if we will make much off of our house. If we dont have a significant gain on our house, would we have to repay it? I read through the guidelines you sent my but some of it is so confusing to me. What about if we rent?

Also, we have to pay the whole amount up front? There is no way around doing payment plans?
Flag Tue Jul 16, 2013
Marcy Carter, Agent, Olathe, KS
Tue Jul 16, 2013
3 yrs from the date you closed.
It has become a Sellers market so now would be a great time to sell. Would love the opportunity to talk with you.

Marcy
http://WWW.MarcyCarterHomes.com
913 271 6990
MarcyCarter@KW.com
0 votes
Shelley Trost, Agent, Lenexa, KS
Tue Jul 16, 2013
You are free to move now! If you would like a free market analysis of your current home, please call or email me and I would be happy to provide that to you.

Shelley Trost
ReMax realty Suburban
913.710.3254
shelley@shelleytrost.com
http://www.shelleytrost.com
0 votes
Bryan Tobias…, Agent, Overland Park, KS
Tue Jul 16, 2013
If you're talking about the first time buyer tax credit there is a tool provided by the IRS that shows how much is left in your account. For homes purchased in 2008 the repayment was over 15 years. You can access that tool at the link below. Please let me know if you have any other questions or if you're talking about a special loan instead of the tax credit.
0 votes
Debbie Gillum, Agent, Topeka, KS
Tue Jul 16, 2013
the time limit is 3 years from the day you purchased the home. So you should be good to sell now.
Thanks
Debbie
0 votes
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