If this is a 2nd property, you would need at least 20% down payment. You can do it in different ways. The new mortgage should be approved even if you have the other mortgage in order for the plan to fly. If the 2nd property is a rental property, you are allowed to use 50% of the income as your income to qualify for the mortgage. During renewal you can have one mortgage for 2 properties and hopefully they would have a better rate.

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I'm selling my house and i want to take all of the profits and apply it towards my new home, which i will be buying when the old one sells. i've heard of this program before. i can't remember what it's called. thank you all for your help!

The old rollover rules no longer apply, and haven't for many years. They were replaced with the $250,000.00 exclusion ($500,000.00 if married and filing jointly) on gain from sale of a personal residence. You must have lived in the property for 2 of the 5 years immediately preceeding the sale, and it must have been your primary residence, not a vacation home or investment property. If your gain is less than $250,000 or $500,000 as appropriate, you can do anything you wish with it, tax free, including purchasing a new home. If your gain exceeds the $250k or $500k, you will have to pay tax on that. It will be treated as a long term capital gain which is taxed at 15% instead of your marginal tax rate. There are two exceptions to this, though they rarely apply. One is a "like exchange" sometimes called a 1031 exchange. The other is an involuntary conversion such as fire or flood. Contact a tax professional if either of these might apply.

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I have been renting this house for $1590 a month for two years now. i am the first tenant of the property since he bought it. his "excuse" for not selling is that when it is paid off in 15 years it will be retirement income for their family. while i completely understand what he is trying to do, wouldn't it be more beneficial for him to make some profit immediately and roll the money over into another property to rent? the community i live in isn't really much of a rental area. there are multiple houses on the same street for sale. any help and ideas would be great!

The only thing that will get him to sell a house that he's not really interested in selling is to make him an offer he can't refuse, which probably means paying above market price for it. If you really want to live in the neighborhood, since there are a lot of houses for sale, start going to open houses. Maybe you'll find an even better house for the same amount that you would end up paying your landlord.

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A little over 2 years ago my wife and i bought a home for $321,000. we are now looking to sell, but the market looks to be between $330,000-$340,000. figuring 6% for realtor fees and the like, we figured we'd have to sell for just over $340,000 to break even. my question is, what happens if we dont? how does that money get paid back to whoever? do we roll it into a new mortgage? do we have to cut a check to our previous lender? hopefully we'll be able to sell for the $340,000, but with the market being what it is, we're not too optimistic. if we dont, then what?

When you sell you will have to pay closing costs including the agent's fee if you use one. You will also have to pay off the existing loan if you have one. What it takes to close the transaction is for you to sign a bunch of documents and pay what you need to for the deal to close. If you had been paying down the mortgage or you had a large down payment you might get a check for cash back. If you had a 100% loan when you purchased then you might have to bring a pile of cash to the close before the deal can complete. Your agent can create an estimate if you provide some basic information. You can do the same if you collect some info from the closing agent. Your old closing statement will provide a crude estimate of the charges that are likely for recording fees, legal fees, transfer taxes, etc. The closing statement is called an HUD-1. Anytime there is a loan involved you will see a HUD-1.

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I am considering selling a beach house and buying another beach house. i would realize about a $500k capital gain on the house i sell. if i buy another beach house with the proceeds of the sale, will i be liable for capital gain taxes when i roll the money into a purchase of like kind?

You may be able to do a 1031 exchange if the property is used for investment or business. This will allow you to delay paying taxes on the gain. See the link to the IRS website that discusses the issue. My advice would be to consult a CPA to ensure everything is done properly. I am a CPA and would be happy to help you. Feel free to email me.

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I have a friend who wants to sell her house in chicago and move out of state. can she sell her home in chicago, buy a new one and defer the taxes on the proceeds from the sale of the chicago property(via a 1031 starker like-kind exchange) by rolling the money into the new property? or is a starker limited to investment and/or business property?

No she can't, if the property is her residence. The 1031 is limited to business and investment property. But if she lived in the house 2 of the last 5 years, there is another Internal Revenue Code provision that shelters much or all of her capital gain, I believe it is 250K for a single person, 500K for a couple.

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Me and my wife have separated and we will be selling our house (which we have had for 2 years), or she will be buying me out. we can’t actually get divorced for another year. (there are no kids involved) i want to get the ball rolling and appoint a solicitor, but as i am not on the best money and i don’t want to get ripped off. any recommendations ?

Harris Fowler - very good solicitors Check their website out and fill in the forum and they will get back to you very quickly. They helped me out.