FTHC

[Lion EA]

My son is considering buying his girlfriend's house to get the FTHC. (He owns some commercial land that girlfriend wants to build a bakery on, so they each have a good reason to make these sales and purchases.) When girlfriend bought the house, the realtor said she did not qualify for FTHC due to the doublewide having no foundation. She bought the house about 2005, so it would not have been the federal FTHC the realtor was referring to but might've been a local or PA incentive. She has been paying real estate taxes on her home (is going to confirm that it's not personal property tax). It's been solely owned by her and insured and resided in since December 2005 or so. Son has lived with her but has no ownership interest; rented in Philly prior to moving to Lakewood and never owned a home. He purchased raw land in Hancock, NY, a year or so ago but hasn't been able to afford building on it. Girlfriend wants to buy it to build a bakery (she's a chef). She could buy his land if she can sell her house. If he buys her house and gets the credit, they'll have money again after paying all those closing costs and he'll still be a landowner and they'll still be able to live in the house they've been fixing up. Everybody seems to get what they want IF he can get the FTHC on a doublewide without a foundation. Anybody know for sure?

[Jack from Ohio]

My son is considering buying his girlfriend's house to get the FTHC. (He owns some commercial land that girlfriend wants to build a bakery on, so they each have a good reason to make these sales and purchases.) When girlfriend bought the house, the realtor said she did not qualify for FTHC due to the doublewide having no foundation. She bought the house about 2005, so it would not have been the federal FTHC the realtor was referring to but might've been a local or PA incentive. She has been paying real estate taxes on her home (is going to confirm that it's not personal property tax). It's been solely owned by her and insured and resided in since December 2005 or so. Son has lived with her but has no ownership interest; rented in Philly prior to moving to Lakewood and never owned a home. He purchased raw land in Hancock, NY, a year or so ago but hasn't been able to afford building on it. Girlfriend wants to buy it to build a bakery (she's a chef). She could buy his land if she can sell her house. If he buys her house and gets the credit, they'll have money again after paying all those closing costs and he'll still be a landowner and they'll still be able to live in the house they've been fixing up. Everybody seems to get what they want IF he can get the FTHC on a doublewide without a foundation. Anybody know for sure?

Let's play what if...

If the house qualifies,

How much FTHC is he expecting?

The FTHC is only 10% of the purchase price with a max of $8,000.

How much will a 4 year old (assuming it was new in 2005) doublewide (foundation or not) sell for?

It seems to me that if 10% of the sale price is prohibiting the sale, maybe he should recheck his ability to take on the responsibility of the loan?

Just some questions that came to mind from a dad with 3 kids in their early 20's trying to make the same kind of decisions.

[Lion EA]

It's a doublewide with a stickbuilt double garage on 2 acres of land (4 acres, don't remember) that she bought for about $135,000 a few years ago from the original owner. They've added hardwood floors in halls, baths, and kitchen, and carpeting in all the other rooms and replaced the refrigerator and maybe the washer and dryer. They've redone one or both baths with new tile countertops and sinks. They've repainted inside and out. The garage also has an upper deck for storage. Even in a falling market, it couldn't have lost value with their improvements. Oh, yeah, new lighting in the kitchen and baths and maybe some other rooms, too, and I think they worked on the mud room/laundry room/kitchen entrance and put up siding/wall treatments in the den. Don't know what she's asking for it but did have it on the market with a local realtor recently. 10% of the sale won't prohibit the sale, but it's one more reason plus the reasons they have for wanting to get the commercial property into her name instead of his if she's going to make use of it anyway that might help the sale make sense before 30 November. They can keep it in the "family" and make $8,000 less closing costs to add to their savings for the bakery or sell it on the open market for a profit and maybe have more money to build a bakery/apartment but have to live with her parents while building. As you mentioned, if the house hasn't appreciated over $8,000 net of realtor's commission, they're better off with the sales and purchases between themselves -- not to mention the fact that they still have their house to live in. Aren't 20 somethings fun?! At least they aren't borrowing money from us. But, all those free PA/NY tax returns are time consuming.