Archive for December, 2017

New Tax Plan Will Affect Home Sellers Living in Homes Under 5 Years

Monday, December 11th, 2017

If you are a future home seller the new tax plan will affect your taxes, so pay attention. Both the House and Senate bills plan to extend the tax benefit that home sellers receive, and this can hurt your bottom line.

The current law allows home owners a tax break upon resale of their property – primary residences only– if they lived in the home for at least 2 of 5 years. Both new plans will increase that to 5 of 8 years. The House and Senate plan to straighten out the differences in their respective plans by the end of the year, and new laws will likely take effect January 1, 2018. Even if the changes are not made until after the first of the year they will likely be retroactive to January 1.

What this means is that sellers who are thinking of selling their primary residence home in 2018, who have not lived there at least 5 years, will not be able to obtain the current tax benefits allowed to those same sellers who have lived in the home at least 2 years.

If you are thinking of selling your primary residence in 2018 and have not lived there at least 5 years, it is advisable to speak with your accountant to find out how much you will need to pay in taxes. Your adviser may need to wait until the plan is approved in order to calculate this number.

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Loan Limit Rate Changes for 2018

Friday, December 1st, 2017

There is some good news on the real estate horizon for borrowers – the Federal Housing Agency (FHA) recently announced that the maximum conforming loan limits will be increased for Fannie Mae and Freddie Mac mortgages in 2018. High balance/super conforming maximum loan amounts in San Diego County will be $649,750.00 for single unit properties. (See below for all types of properties).

Maximum conforming loan limit for single unit properties across most of the country will increase to $453,100 in 2018. This is an increase from the current maximum of $424,100. Some counties will go up to $679,650 for single unit properties. Anything above this will be considered jumbo financing.

It is important to note that the above rates only apply to conventional loans, not to FHA and VA. But my mortgage professional tells me that those will soon change as well.

Here are the new Conventional Loan Limits for San Diego, California:

2018 Loan Limit – 1 Unit
$649,750

2018 Loan Limit – 2 Unit
$831,800

2018 Loan Limit – 3 Unit
$1,005,450

2018 Loan Limit – 4 Unit
$1,249,550

If you have any questions you can contact my mortgage broker extraordinaire, Elvin Wesley with Ranch and Coast Mortgage, at 760-580-1733.

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