Selling relatively soon after buying

Anyone do this? We bought less than 2 years ago and want to move. I know you can put less than 20% down on a first home, can you do this on subsequent homes as well? We obviously have a lot of number crunching to do but just wondering what I'm up against.

Thanks!

Selling relatively soon after buying

I would think about the reasons you want to sell first. Also I would think that the market is better now than 2 years ago and you could probably get more for your house. I have a friend who bought in 2013 and sold oct 2015 to relocate to NC. She made about 60k profit. Have you put a lot of money into your house? I would be sure that you get any money you put in back and have a profit to put down. That said- I don't believe you need to put 20% down on the next purchase

Selling relatively soon after buying

You can get a conventional mortgage with 10% down. Some may let you put less.

Keep in mind that realtor fees, closing costs, moving, etc are all going to take a bite out of your profits.

Re: Selling relatively soon after buying

Selling relatively soon after buying

I know I sold my first house after 18 months and we got a penalty for it not being at least 2 years since we bought. I don't remember what it was called but something the bank related to a "flipper" tax.

Re: Selling relatively soon after buying

Many people buy a starter house and then move into a bigger/better house. I don't know about your under 2-year penalty, but I wouldn't worry about appearances. We plan on selling 3-4 years after purchase.

Re: Selling relatively soon after buying

You can put less than 20% down, regardless of whether you are a first-time buyer or not.

With a conventional loan, you can do as little as 5% down and with an FHA loan, as little as 3.5% down. A VA loan can be zero percent down.

I would recommend talking to a loan officer (either at your current mortgage lender or shop around/get recommendations for a new one) to find out what you would qualify for and what types of loan programs would be available to you (and the pros/cons of each). It's easy to assume, especially since you purchased recently, but things do change (in the mortgage industry, as well as in your personal circumstances, even in a year or two).

Also, there is no general penalty for selling soon after you buy, but there are restrictions with certain types of loans (like SONYMA, for example). So you may want to inquire with your mortgage lender about the terms of your current mortgage.

To assist with your numbers crunching, you should also get a realtor (or a few) in to see your home and give you a professional opinion on current value. Zestimates and the like are not at all accurate, so it's best to have someone in to look at your home and evaluate it. It's a no-cost, no-obligation service, and it can only help you as you move forward with your decisions. You want to be as informed as possible.

Re: Selling relatively soon after buying

There is no flip tax for selling a house less than two years. If you sell your house for more than what you paid, you have to pay capital gains unless you used it as your primary residence for two out of the past five years. If you only used it for one year, you can deduct any expenses or home improvements against the gain. A good accountant can minimize this tax burden.