In a typical relocation the spouse that does not have a job was able to use their projected income combined with the relocating spouse income when applying for a mortgage which would help determine housing affordability.

FNMA had announced it will disallow inclusion of 'trailing' income.  What does this mean?  It means that this secondary trailing income will not be allowed which will reduce the affordablility of the couple's next home.  According to RISMedia 70% of all corporate relocations are dual income so the effect on these relocations is significant.  This rule change seems to stem from current economic conditions and the availability of employment.

As a Realtor® with years of helping families relocate I must work even closer with these families…

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More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.
Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000. 

$8,000 First-time Home Buyer Tax Credit at a Glance

  • The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid.
  • The tax credit is…

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