buying a new house

[tarbear]

I don't know if this should go here or not but my husband and I want to buy a house. We are First Time Homebuyers. (yay for tax refunds ) We are trying to figure out if our plan will actually work or not since we won't be living here in AZ due to him being stationed in Colorado. We wanted to purchase a home here and rent in out and move in once he is done with Active Duty. I was told mixed answers today so I want to get it cleared up...

First, what's the difference between buying a home with VA benefits vs no benefits?

I was told that we cannot rent out a home if we are using VA benefits. Somehow, they would find out that it is not our primary address and that would be considered "cheating the system" since we are paid by the government and cannot invest using their money. Is this true?

Do you have to pay a down payment if you use VA? If you do, can you use part of the $8000 tax refund to put towards the down payment?

I think that is all I've got for now. If anyone has a clue or any suggestions, let me know! We really don't know what we're doin. Thank you!

[gunsgirl]

ok first- the VA- the VA is for primary homes- you have to live in the home for 2 yrs ( or show orders moving you out of the area before 2 yrs to rent it)

you can rent it after the 2 yrs for what ever you can get for the rent.

for the 8,000 dollar tax credit- you also need to ensure the home is going to be a primary residence.

if you are buying it for investments- you cannot use the VA, will be considered an investor and will have to go conventional with 10-20% down.
the rules for investors are strictor than primary home buyers.

when you go to apply for the mortgage loan- if you currently do not live in the area, they will require copies of the orders to the area you want to buy.

lying on any form in real estate in considered mortgage fraud and is severely punished- by long federal prison sentences and huge fines .

[Kris]

The VA you have to live in the home and be able to show proof.

The 8000 tax credit you have to live in the home 3 years

You don't have to have a down payment with the VA

[Kris]

ohh and you get the 8000 dollars after you close and the sale is filed with the city

[tarbear]

Originally Posted by gunsgirl ok first- the VA- the VA is for primary homes- you have to live in the home for 2 yrs ( or show orders moving you out of the area before 2 yrs to rent it) you can rent it after the 2 yrs for what ever you can get for the rent. for the 8,000 dollar tax credit- you also need to ensure the home is going to be a primary residence. if you are buying it for investments- you cannot use the VA, will be considered an investor and will have to go conventional with 10-20% down. the rules for investors are strictor than primary home buyers. when you go to apply for the mortgage loan- if you currently do not live in the area, they will require copies of the orders to the area you want to buy. lying on any form in real estate in considered mortgage fraud and is severely punished- by long federal prison sentences and huge fines .

hmm...thats good to know.

thanks, and does anyone know if you can use the refund for down payment/closing costs if you don't use VA benefits? or I guess that doesn't work since you can only get qualified for that after you close huh?

[gunsgirl]

you cannot use the credit for closing costs or down payment.

remember the 8,000 dollars is a tax credit, and there are income guidelines and rules to getting it- it is also only good till july.
but you can only get it on a home you will live in for at least 3 yrs.

[Rich Lunsford]

Nice work gunsgirl and Kris. I concur! Keep up the good work!

Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

[CoffeeGirl]

Originally Posted by tarbear I don't know if this should go here or not but my husband and I want to buy a house. We are First Time Homebuyers. (yay for tax refunds ) We are trying to figure out if our plan will actually work or not since we won't be living here in AZ due to him being stationed in Colorado. We wanted to purchase a home here and rent in out and move in once he is done with Active Duty. I was told mixed answers today so I want to get it cleared up... First, what's the difference between buying a home with VA benefits vs no benefits? I was told that we cannot rent out a home if we are using VA benefits. Somehow, they would find out that it is not our primary address and that would be considered "cheating the system" since we are paid by the government and cannot invest using their money. Is this true? Do you have to pay a down payment if you use VA? If you do, can you use part of the $8000 tax refund to put towards the down payment? I think that is all I've got for now. If anyone has a clue or any suggestions, let me know! We really don't know what we're doin. Thank you!

Maybe this can be moved to the home sweet home forum?

[NocturneSiren]

Just one caveat, I thought the tax credit was good til Dec. 2x, 2009?

[CocoaGoddess]

http://www.federalhousingtaxcredit.com/2009/glance.php

The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.