Little Known Facts About The Tax Credit For Existing Home Buyers

The tax credit for existing home buyers comes with a couple restrictions that some may not be aware of. Everyone knows you must have lived in the residence for 5 years, but you also must have 30% equity in the home and agree to use the new home as your primary residence. You must also agree to sell your original home unless you have a six month reserve of the mortgages, taxes, insurance premiums etc. for each home. So if you are carrying a $1500 payment for each home you are looking at a $20,000 reserve minimum left after your new home purchase. This information was shared by our mortgage broker in the Century21 Alliance office this past week.