Condo – sell or rent out?

[SD Realtor]

Rayb thanks for that clarification. Isn’t there also a silent second that you can get with a CalHFA?

SD Realtor

[Raybyrnes]

SD Realtor

Yep

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan.

DOWN PAYMENT ASSISTANCE PROGRAMS

Term matches term of first mortgage

High Cost Area Home Purchase Assistance Program (HiCAP)4
6.750%

CalHFA Housing Assistance Program (CHAP)
6.750%

California Homebuyer’s Downpayment Assistance Program (CHDAP)
3.000%

Extra Credit Teacher Program (ECTP)
5.000%

There use to be a program called the Nehimiah program that would allow you to go over 100% with participating lender but I believe the program has been eliminated and is being investigated as to the legality of it.

[Raybyrnes]

SD Realtor

Yep

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan.

DOWN PAYMENT ASSISTANCE PROGRAMS

Term matches term of first mortgage

High Cost Area Home Purchase Assistance Program (HiCAP)4
6.750%

CalHFA Housing Assistance Program (CHAP)
6.750%

California Homebuyer’s Downpayment Assistance Program (CHDAP)
3.000%

Extra Credit Teacher Program (ECTP)
5.000%

There use to be a program called the Nehimiah program that would allow you to go over 100% with participating lender but I believe the program has been eliminated and is being investigated as to the legality of it.

[Raybyrnes]

SD Realtor

Yep

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan.

DOWN PAYMENT ASSISTANCE PROGRAMS

Term matches term of first mortgage

High Cost Area Home Purchase Assistance Program (HiCAP)4
6.750%

CalHFA Housing Assistance Program (CHAP)
6.750%

California Homebuyer’s Downpayment Assistance Program (CHDAP)
3.000%

Extra Credit Teacher Program (ECTP)
5.000%

There use to be a program called the Nehimiah program that would allow you to go over 100% with participating lender but I believe the program has been eliminated and is being investigated as to the legality of it.

[2008]

Thanks everyone. I have sat down and looked at some of the prelim numbers – a friend who is a REIT analyst sent me a cash flow model that models out my loan over 30 years, plus looks at tax implications, rental impact, etc. Last night looked at what my payment will look like starting basically in 2011 when it resets at the end of 2010, less the tax savings. It does look like I am far better off just holding on to this place – either living in it myself – which until it resets, does not carry any negative holding costs, or if I were to rent it out and take the tax write off. It does get a lot uglier in terms of holding costs starting in 2011 if I cannot refi, but I need to look into this Calhafa program and find out what my options are there.

[2008]

Thanks everyone. I have sat down and looked at some of the prelim numbers – a friend who is a REIT analyst sent me a cash flow model that models out my loan over 30 years, plus looks at tax implications, rental impact, etc. Last night looked at what my payment will look like starting basically in 2011 when it resets at the end of 2010, less the tax savings. It does look like I am far better off just holding on to this place – either living in it myself – which until it resets, does not carry any negative holding costs, or if I were to rent it out and take the tax write off. It does get a lot uglier in terms of holding costs starting in 2011 if I cannot refi, but I need to look into this Calhafa program and find out what my options are there.

[2008]

Thanks everyone. I have sat down and looked at some of the prelim numbers – a friend who is a REIT analyst sent me a cash flow model that models out my loan over 30 years, plus looks at tax implications, rental impact, etc. Last night looked at what my payment will look like starting basically in 2011 when it resets at the end of 2010, less the tax savings. It does look like I am far better off just holding on to this place – either living in it myself – which until it resets, does not carry any negative holding costs, or if I were to rent it out and take the tax write off. It does get a lot uglier in terms of holding costs starting in 2011 if I cannot refi, but I need to look into this Calhafa program and find out what my options are there.

[SD Realtor]

Thanks for the info Rayb!

2008 good for you for doing a comprehensive analysis. Looking at all of the options and doing a good study of them is a diligent manuever. Note it does not lock you into any decision, it just gives you information.

SD Realtor

[SD Realtor]

Thanks for the info Rayb!

2008 good for you for doing a comprehensive analysis. Looking at all of the options and doing a good study of them is a diligent manuever. Note it does not lock you into any decision, it just gives you information.

SD Realtor

[SD Realtor]

Thanks for the info Rayb!

2008 good for you for doing a comprehensive analysis. Looking at all of the options and doing a good study of them is a diligent manuever. Note it does not lock you into any decision, it just gives you information.

SD Realtor

[2008]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

Thanks

[2008]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

Thanks

[2008]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

Thanks

[(former)FormerSanDiegan]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

You can write off more things on a rental. These include: depreciation, insurance, maintenance, and anything related to managing, marketing the rental, etc. Depreciation alone would likely be 10K per year in your case.

You deduct these against the rental income first. Any additional losses (up to 25K, if you make less than 100K) can be deducted against regular income.

This 25K limit decreases by $1 per each dollar you make over 100K. It goes to zero at 150K.

Any losses you cannot deduct are carried forward for the next tax year as a carryover loss. You can use these in the future or take all your carryover losses when yo dispose of the property.

[(former)FormerSanDiegan]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

You can write off more things on a rental. These include: depreciation, insurance, maintenance, and anything related to managing, marketing the rental, etc. Depreciation alone would likely be 10K per year in your case.

You deduct these against the rental income first. Any additional losses (up to 25K, if you make less than 100K) can be deducted against regular income.

This 25K limit decreases by $1 per each dollar you make over 100K. It goes to zero at 150K.

Any losses you cannot deduct are carried forward for the next tax year as a carryover loss. You can use these in the future or take all your carryover losses when yo dispose of the property.

[Author]

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