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Steps to buying a house in cash?
What would the first steps into buying a house cash. My fiance & I have been saved & are about ready to starting looking for houses. My real question is, I don't have legal income & he's a felon. 20 & 19 years old. Who do we talk to & would we even be able to buy a house?
- JudyLv 71 month ago
First step: save enough cash to pay for all of it, plus closing costs.
- 1 month ago
Start at the beginning, this is going to take some long term planning. You will need at least three years of filed tax returns. Showing up at a closing with a suitcase of cash will have the IRS onto you in a heartbeat. You can buy a house without taking out a mortgage but everyone you deal with will be legally required to report cash transactions of over $10,000 under money laundering rules. Once the IRS has grabbed your savings, they will go after you for your unreported income.
Then get married, you never want to buy a house with someone you are not married to. If you think not filing a tax return is bad, just wait till you have to unwind a house purchase you have made jointly with a shack-up.
- MaxiLv 71 month ago
"I don't have legal income " So how are you going to get around tax fraud you are committing ? As ANY amount over 10k is reported to the tax office and as you are committing tax fraud you will be in serious criminal trouble as the money can't be proved as legal earnings
- SlickterpLv 71 month ago
Transactions over 10K will be reported to the IRS, who will find your large amount of cash with no income very suspicious. This is one of the reasons not filing your taxes is bad.
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- Anonymous1 month ago
um, a realtor...start looking at club fed (prison for tax evasion)..him being a felon is irrelevant...doesn't affect homebuying unless you are buying into an HOA, then they might reject you.
your income won't be reported based on buying a house, it only triggers a red flag if you suddenly put a lot in the bank...if you have had savings in a bank and slowly added to that, you will be okay...but being that you likely amassed this income in the last couple years...if it's in a bank, i'm surprised it wasn't flagged...
if the money is not in a bank, doubtful any sellers will work with you....
except in trollville...
- ?Lv 71 month ago
The IRS is going to wonder where you got all that cash to buy a house at your ages. The closing agent will be suspicious as well. Rarely is a house purchased with actual cash. The cash is deposited in the bank and a certified check written for the purchase and other closing costs.