FHA Loan with repair costs| Need Help fixing up Bank Owned Homes?

FHA 203k is a loan where you can purchase the home and then roll in the cost of repairs to be done after closing. Purchasing a bank owned home or short sales home, you have to purchase AS-Is and can not do any repair before closing.

Now there is a loan to help you purchase a great deal and make it your dream home. Call Rhonda 352-266-2637

RE-buildUSA allows you to more easily enjoy the following FHA 203k benefits:

•Only 31/2% down payment required, which can be gifted by family members
•More flexible qualification requirements allow those with less than perfect credit to purchase a home at competitive rates
•A single loan for both purchase and improvement of your home means you make only one loan application and pay one set of closing costs – saving you time and money
• FHA loans are assumable and there are no prepayment penalties
•An FHA Energy Efficient Mortgage (EEM) can allow you to qualify for a larger mortgage to add additional improvements that will lower your utility expenses.
•By including cost of renovation in your home mortgage, you pay for these improvements over time at a much lower interest expense than conventional alternatives
•Rather than paying a premium for a home in “perfect” condition, take advantage of the great prices available on foreclosures or other homes on the market that are in need of repair or remodeling
•Instead of paying for a previous owners improvements you may not desire, invest instead in exactly the features, colors, styles, etc. that suit your tastes and needs
•Enjoy the opportunity to live in an up-to-date home in a great location closer to work, shopping, cultural activities and more
Your RE-buildUSA 203k Specialist™ is trained and ready to help you find a great home at a great price that can be improved through the use of the FHA 203k program.

I have many short sales and foreclosures. If you would like to find a home call me 352-266-2637.

Short Sales Tax Consequences? NOTHING OWED

I called the IRS today and had a lengthy conversation about the consequesnces on short sales with them. Bottom line is Nobody has to pay anything! Great news. Everyone is afraid of the capital gains and there is no need. Short sale tax consequences are nothing.

You will need to get a advice from a cpa or call the IRS. The IRS wants you to call because each sale is different, which I understand, nobody sale is the same.

Here is what IRS states:

Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).
The debt must have been used to buy, build or substantially improve the taxpayer’s principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.

If you have done a short sale, talk to your accountant about form 982. IRS said it is for personal homes the rule is that you have to have a gain on sale of home:if individual $250,000 or married $500,000. So you will have to made over $250,000 to pay any taxes on the short sales shortage. They told me that if it is a nonprimary home that you need to drop the basis on anther home and pay taxes later. Please call IRS for specifics on your deal.

Short sales are better for seller and banks. Make sure you get all the information before you dive in. You can call me anytime 352-266-2637 i would love to help you.