Permanent Change of Station Handbook
A Handbook on Travel and Transportation Benefits for Relocating Employees
9.0 Purchasing Your New House
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Permanent Change of Station Handbook A Handbook on Travel and Transportation Benefits for Relocating Employees 9.0 Purchasing Your New House |
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As defined in section 1.1 - Determining Your Entitlements, the entitlements of this section do not apply to the following transfer types:
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This section will help you determine answers to the following questions: ü What expenses are reimbursable in connection with purchasing a house at your new official station? ü What is the maximum amount you will be reimbursed? |
You are eligible for reimbursement of certain expenses associated with the purchase of your new house. To be eligible, you must purchase your new house within 2 years of the calendar date on which you report at your new official station[1].
Note: If you enrolled in the relocation services program, you should contact the Service's contracted relocation services vendor and familiarize yourself with their services related to purchasing your new house.
You may not receive an advance of funds for the purchase of your house. A list of reimbursable expenses is provided below. Be aware that total reimbursement is limited to 5% of the purchase price of your new house.
[1] Extensions of up to 2 years may be granted by your new Regional Director on a case-by-case basis.
The following expenses are reimbursable related to the purchase of your new house:
Appraisal fee for purchase of new house.
Legal (attorney) and related fees for searching the title, preparing abstracts, and providing a title opinion, costs of preparing conveyances, other instruments and contracts, related notary fees, cost of making surveys, preparing drawings or plats, recording fees and recording taxes (or other charges incidental to recordation), document preparation and flood certification.
Inspection (environmental and property) when required by the mortgage lender to obtain financing or when required by Federal, State or local law.
Credit report (when required for financing).
Lender's title insurance policy (if paid for by employee, on a residence purchased by the employee for the protection of property, and required by the lender).
Escrow agent's fee, or settlement fee, for closing a real estate transaction.
State revenue stamps.
Transfer or mortgage taxes.
Loan origination, loan assumption, or loan transfer fees generally limited to 1% of the amount of the new loan.
Federal Housing Authority (FHA) or Veterans Affair (VA) application fee.
Expenses in connection with construction of a new residence, which are comparable to expenses reimbursable in connection with purchase of an existing residence.
Power of attorney (trustee fee).
Title examination.
Title insurance binder.
Bridge loan and second mortgage fees.
The following expenses are non-reimbursable:
Costs of litigation.
Broker fees or commissions.
Funding fees (e.g., VA funding fee).
Mortgage insurance premium (MIP).
Administrative fee (part of loan origination fee).
The cost of owner's title insurance, "record title" policy, or mortgage insurance against damage or loss of property for one's own protection.
Maintenance and operating costs.
Property taxes.
Mortgage discounts, points, interest on loans, and losses in connection with purchase of a residence due to price or market conditions.
Hazard insurance.
Flood insurance.
Home warranty.
Amortization schedule (if you claim reimbursement for the loan origination fee).
Warehouse fee.
Homeowner/condo fee.
No fees, costs, charges, or expenses such as underwriting fees, processing fees, or tax service fees are reimbursable. Additionally, any expense determined to be part of a finance charge under the Truth in Lending Act is not reimbursable.
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Hint: Similar to when you sold your old residence, you will need to prepare and submit the following documentation in order to claim reimbursement for expenses associated with the purchase of your new residence:
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