If you have recently had your heart set on buying your dream home but your mortgage company could not qualify you, it’s not the end of the world. There are more options to people with bad credit than ever before. The first order of
business is to find out your credit score, if you haven’t already. Talk to a credit specialist and figure out a solid plan on how to improve your credit. This will prove to the mortgage company that you are serious about restoring your credit.
The next thing to do is research. Find a couple of mortgage brokers that specialize in people with credit issues. You can find a specialist in local real estate newspapers and (free) magazines. There advertisements are usually announce the following: We can help you buy a home regardless of credit history - bad credit, no credit and foreclosures.
There are also programs such as ‘purchasing a home with the option of buying’. The homeowner or landlord will make a fair arrangement with you. You will be required to leave a down payment between the amounts of $3000 - $8000 (the higher the deposit, the less you have to pay monthly). If you pay consistently without any late payments, they will place a percentage of your monthly rent towards the purchase of the home that you will be renting. After a 12 to 24 month period, the landlord or homeowner will turn your lease into a mortgage. This will not only make you an official homeowner but it will help your credit rating. Make sure that all transactions are done in writing. Hire a lawyer to review the terms and conditions of your ‘rent with option to buy’.
If renting with the option of buying is not your cup of tea, there are other options. You can buy foreclosed homes at annual tax sales. In most states, you do not have to have good credit to purchase a home. The county or city tax office is only concerned about one thing: a cashier’s check or a money order for the full amount of the sale. The tax office could care less if you were unable to keep up with your monthly cable bill for the Showtime Movie Channel. If the tax bureau had to keep score of who has good or bad credit, they would have a difficult time selling houses.
You can find out further information on how to buy a home with bad credit on the Internet. To find out how to get a listing of yearly tax sales, contact your county or city’s tax claim office. You can also find out further information on a credit specialist on the Internet.
Connie Barker is the owner of several financial websites including those which deal with How To Buy A Home With Bad Credit
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Selling your home has many benefits in the
tax world. The biggest tax break in selling your home is that you can exclude from taxes up to $250,000 in profit if you’re a single owner, which translates into $500,000 for couples filing jointly. In addition, you will not owe any capital gains taxes. This exclusion also covers the sale of a parcel of land adjacent to your house, unless it’s used for
business.
Tax Rules of Selling Your Home
There are a few rules to regulate the tax benefits. Know them, live them, and use them to your full advantage!
The first rule is pretty straight forward: You must live in your home and it must be your principal residence.
Second, not only must you live in your home, but you must have lived in it for at least two of the previous five years. The two years that you have lived in it do not need to be in sequential order. You can rent your home for two years, live in it for one, rent it out for one more year, and live in it the last year, for a total of two years during the five year period. As long as you have lived in your home for two years during the last five, and can prove as much, you are covered.
Lastly, although there is no maximum to the number of personal residences that you can sell and reap tax-free gain, those sales must always happen two years apart. You can sell your residence and buy a new residence, and in two years you can sell that residence. You can do this over and over again as many times as you like, although don’t forget, timing is crucial and planning is necessary.
When it comes to taxes, there are many rules, regulations, and changing seasons. Be sure to contact your attorney to find out the most current laws and check your unique situation. With a little education, research and planning, you can enjoy the tax benefits of selling your home - as many times as you like!
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Mortgage Brokers Online.
Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.
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