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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/29/2019  8:17 PM
Author:  aj485 Number:  129262 of 129287

I was told not even one day later on our asset based mortgage. It was with Amerisave and they sell their loans almost instantly, so perhaps it's just being conservative on their part, perhaps he didn't know what he was talking about, though its the 4th loan we do with him and he's always been spot on.

It's the IRS that set the 90 day rule for what can be an 'acquisition' mortgage. From IRS Pub 936

Mortgage treated as used to buy, build, or substantially improve home. A mortgage secured by a qualified home may be treated as home acquisition debt, even if you don't actually use the proceeds to buy, build, or substantially improve the home. This applies in the following situations.

1. You buy your home within 90 days before or after the date you take out the mortgage. The home acquisition debt is limited to the home's cost, plus the cost of any substantial improvements within the limit described below in (2) or (3). (See Example 1, later.)

Lenders are always free to be more strict than the IRS requires them to be.

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