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First time home buyer... sorta? - questions inside

1,965 Views | 18 Replies | Last: 6 yr ago by ChoppinDs40
ChoppinDs40
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Getting married in a few weeks and had a conversation at work come up about the first time home buyer options.

We already own a home but it's 100% in my name, underwritten to my income, and I plan on filing individual taxes for some time.

With that, assuming her income was enough to underwrite the mortgage servicing, could she apply as a first time home buyer?
Wife is an Aggie
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I'm no pro but Isn't a first time home buyer program pretty much just an FHA loan...? Which unless you have really bad credit and/or can't muster up more than 3.5% down payment, I see no reason why you would ever want an FHA loan.
Jay@AgsReward.com
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Sponsor
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You do not have to be a first time homeowner to use an FHA loan or really any other low down payment loan program (including the 1% program available in most populated counties in Texas.), There are some grants, down payment assistance programs etc that might require you to be a first time home buyer but most of those are either not that great, income limited or require you to live in certain census tracks. Or, all three.
ChoppinDs40
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Should have specified. Looking to basically buy an investment property with as little down as possible.

Yeah yeah investment property/primary residence. Whatevs
Deats99
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What-evs is an intent to occupy affidavit. So buying a house as owner occupied with the intent of flipping it immediately to investment is mortgage fraud.

Just saying
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
GarlandAg2012
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Can you continue to file taxes as a single once you're married? Aren't the brackets more favorable for a single person? Or did the OP mean married filing separately?
ChoppinDs40
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From the tax classes I took in college, being married does not provide any benefit on taxes so that people don't get married for tax relief.

It would benefit us a bit because my income is 2x hers and some of mine would fall into the lower bracket if we filed together. I prefer remaining separate because her rate is so low and I still get to itemize (taxes, interest, goodwill donations, etc.)
GarlandAg2012
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Right, I would like to file as single as well if possible, I didn't think you could. Married filing separately and filing as single aren't the same. I was confused by your phrasing in the OP.
ChoppinDs40
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Does the IRS know you're married?
GarlandAg2012
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Hmm so your plan is just to commit fraud and post about it online? Guess your wife won't be changing her name?
ChoppinDs40
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Is disclosing marital status fraud?
sts7049
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you like bending the rules huh
ChoppinDs40
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I like to put out feelers on how far interpretations of rules can be pushed.

Before I jump into something, assessing the risk of my set out goals is usually a first step.
GarlandAg2012
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Yes, choosing to file as single when you are married is fraud. Read the instructions:

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

When you sign, you are agreeing to this:


Quote:

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge
BigPuma
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In this case yes. You know the part where you sign a return "under penalties of perjury, I declares that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year."

Yeah that part. Same goes for HOH vs Married Filing Separate when in process of divorce with kids.
BigPuma
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black and white rules are black and white. While the tax code may be up for some interpretation, filing status generally isn't one of them.
jtraggie99
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AggieFanatic09 said:

I like to put out feelers on how far interpretations of rules can be pushed.

Before I jump into something, assessing the risk of my set out goals is usually a first step.

It's not an interpretation. It's very clearly black and white. If you are married, you have two options, Married or Married Filing Separately. If you are married and you choose another option, it's fraud. There is no gray area here.
AggiePlaya
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Have you heard about the IRS aggiefanatic?
thaed137
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I would call 1-800-829-0433 and talk to them about your Tax issues and with the home decision. They are very versed on the subject and would love to help you.
ChoppinDs40
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Thanks for piling on.

I've always used turbo tax in the past so a lot of those fine print things go by the wayside.

Thanks,
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