1. A first time buyer of an owner occupied house is defined as someone who hasn’t owned
a house in three years. Prior to that you could own as many houses as you wanted but
that would have to be sold before the three years starts.
2. If you take out cash from your house with a home loan the money you received is not
taxable. It is a loan, not income .
3. If you take more than $100,000 out of your house, whether the house didn’t have a mortgage
prior to this loan, or had a mortgage of any size you can only deduct the interest of an
additional $100,000 you take out on the new loan.
Any amount you take out over the additional $100,000 does not qualify to have
the deduction from your taxes for the interest you will pay.
You can take the interest on any loan over $100,000 if the proceeds go to improve the house.
4. If you have a VA certificate because you were in the military or are currently in the military
you can buy a house with no money down up to $625,000. If you have a house and want
to pull cash out up to $625,000 you can do it without any money of yours.
5. If you have a VA certificate you can buy a house over the $625,000 maximum allowed you.
must put down 20% of the difference of $625,000 and the amount of the house.
6. Property tax does not increase when you are refinancing your house and the value is higher
than the assessed valuation. The mortgage industry doesn’t share information with the
taxing authority in the area.
7. You cannot use the income from renting a room in your house to qualify for the loan.
8. A second home that is bought with a conforming loan will get the same rate as a primary
home. Second homes that need a jumbo loan to purchase the property will generally pay
a higher interest rate
9. A high percentage of second homes are bought with monies pulled out of the primary
house and a mortgage loan for the balance. There are advantages with this formula
from tax savings and the price appreciation on the second home.
10. New tax rules have recently been adopted when selling your personal residence. A full
dissertation will follow shortly .