Forgotten Your Password?

Need to Register?

Question Icon

I am looking to move out of state, and have a FHA loan currently. Is there a time limitation on how long I have to re-invest the proceeds from the sale into a new property?

by linda498 from Lucerne Valley, California. Dec 23rd 2015 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

That's really a tax question not a mortgage question. Generally if you sell your home and then purchase another in the next year any gain from the sale is deferred until way into the future. There is a one-time/lifetime exclusion allowed as well but the amount can change if congress makes changes to tax laws - talk to your tax professional if you want specifics.

Dec 23rd 2015
0
0
Laleh Hanks (laleh@americachoicemortgage.com)
#1087 ranked lender in California - 13 contributions

If you had an FHA loan then this is likely our primary residence. You should check with your CPA or contact me if you need referred to one. The time limitations from my knowledge is on investment property proceeds which can be held in a 1031 exchange. If you have reported this property as a rental on your tax returns for a couple years you may be able to do this but not likely as a primary residence. The tax laws vary depending on primary residence, capital gains, investment, etc. When buying an FHA loan you are stating that you "intend" to live in the property for 1 year as your primary residence. Feel free to contact me if you have more questions! 888-843-5525

Dec 23rd 2015
0
0

Linda I am not a tax expert and you should consult your CPA for tax related questions. However, there is no time limit on holding onto your proceeds and utilizing them to purchase another property.

Dec 23rd 2015
0
0
Subscribe to our news feed.