How To Buy A Home And NOT Pay Transfer Taxes!
When you purchase a home in Delaware, it is important to know that the state and county receive a tax from the transaction called a Transfer Tax. This tax is 3% of the sale price of the home. Half of the tax goes to the state and half goes to the county. This tax is typically split equally between the Buyer of the home and the Seller.
Let’s take a look at a simple example. Let’s say you want to buy a home for $200,000. As the Buyer, your share of the transfer tax is 1.5% of the Sale Price. So, 1.5% of $200,000 is $3000. That’s a nice chunk of money that goes to our beloved state and county government.
Well, there is a very cool way to avoid this Transfer Tax and almost no Buyer knows about this. Here’s the deal. You already know the real estate market is littered with Foreclosure properties. Check this out….if you buy a Foreclosure that is owned by Fannie Mae, Freddie Mac, HUD or VA the Transfer Tax is waived! Yep, you read that correctly. The Tax is waived…you pay $0.00. How cool is that?!
What is even better is that there are some sites that will let you search your local area for these foreclosures. Fannie Mae has a site called Homepath.com. Right on the home page is search criteria to select and it will take you to a list in your selected area. Freddie Mac also has a search site called Homesteps.com. Simply type in the city, town and /or County you want to search.
FHA loans that are foreclosed upon become what are known as HUD Homes. These are properties that are owned by Housing and Urban Development (HUD). They have a site that lists their properties and it can be found at hud.gov/hudhomes Just click on the map to select your state, then click on what part of the state you are interested in ….and the list will come up.
And lastly, the Veterans Administration offers a site at va.equator.com that lists VA owned foreclosures. The search criteria is right on the home page. Make your selections and it will bring up a list of what is available.
Well, there you have it. You can search for yourself and save thousands!
Remember, Realtors and Home Sellers will require you to be pre-qualified prior to working with them. Call me today at 302-674-5540 or go to the Get Prequalified tab. You can be Pre-Approved in minutes and get a Free copy of your credit report….that will include your credit score.
Wishing You The Best,
1st Capitol Mortgage, Inc.