my husband and i may be heading for divorce and we have a fha loan. and we got the 8,000 dollar tax credit. what would have to be done if either one of us stay at the house.

Hello Annette,The $8,000.00 Tax credit was applied to you for purchasing your primary residence, it is my understanding as long as either one you continues to occupy the property as a primary residence you are still entitled to that money. the divorce and change of ownership in the property is just making changes to who will be financial responsible for the loan and as long as either one you is responsible for the loan and is living at the property it is still consider an owner occupied property. i would also recommend you talking to a Certified Public Accountant who is more familiar with the IRS and Tax laws.

If your rate is above 6% now, you need to do a FHA streamline to lowerthe rate to about 5%.If one or the other wants to stay in the house, you need to refinance into that person's name...providing they qualify on their own.If you sell the house..their will probably be a prepayment penalty or re-captureof part of the tax credit.Call if you want more information...314-744-7861