[californiaholic]

We’re looking to purchase our first home in California in the next month or so. We will be first time home buyers using the VA loan (husband is military). We plan on living in the home for 2 years and then renting it out from that point moving forward to help pay off the mortgage. I know there are some varying First Time Home buyer credits, grants etc. and that they vary by state too. I feel like I’m forgetting all of the important stuff I learned in school & and I don’t want to miss out on important tax deductions, credits, etc.

What things do I need to remember?!! Help a girl out lol 🙂

[Troys22]

If you are talking about the first time home buyer credit, I don't think that credit is allowed anymore. I believe it was only from a short period of time, maybe two years (08-09). It was just like any other credit you could take on your tax return if my memory serves me correctly. Again, I don't think it is available anymore though. However, there are several other first time home buyer programs out there. I know in Ohio several lending institutions offer a program for first time buyers but the funds are limited and once they are gone, the program is over until the next year. Of course there are income requirements and other requirements for those specific loans. Just ask your bank or mortgage lender lender about these programs.

[jenpen]

@Troys22 is correct – there is nothing special for first time buyers at this time. If you itemize, then you can add your mortgage interest, property taxes, and any PMI you might have. But with the new standard deduction increase, I see a lot of people falling short there. In my state (IL), there is a deduction on the return for property taxes, but it's not much. Just a little something. So that may be worth looking into in CA, I suppose.

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[Anonymous]

Check your state tax as well. My state still has kind of credit or program for 1st time home buyer.

[Recked]

I am not sure you can rent out a home purchased as a primary residence using a VA loan.
You may want to look into that.

[cpabound]

Correct Recked.

Military spouse here. You are required to occupy the home with a VA Loan and you are not allowed to rent it out even if you are PCSing. When you decide to rent it out you can refinance to an IRRRL (Interest Rate Reduction Refinance Loan) and meet the requirement of previously occupying the home. The rate is required to be lower than the original VA loan, unless it was a variable rate.

Hope that helps!

[Author]

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