So I am a 26 year old living in Pennsylvania looking to transition from renting into purchasing my first home. (Already approved). Looking in a modest price range under $90k. The only reason I am even able to consider this is when I was first born my grandfather put some money into a stock for me. That stock is currently valued at roughly $15k. I wouldn't have the capital to even consider this otherwise. I only have about $4k in my savings.
For some background. I work in the arts and make very little money, about $35k a year. I have very few monthly expenses, however. My car is paid off, my credit card debt is paid off in full every month. All of my student loan debt is federal and on income based repayment plans which result currently in me paying zero dollars a month for them. I am on this plan specifically because I work for a non-profit (and intend to do so for the rest of my career) and I get complete loan forgiveness after 120 payments (even if the payments are at $0 a month).
Here are my questions:
Given my tax bracket, I believe I will pay 0% interest on cashing out my long term investment stock. Does this sound right?
Is there anyway to cash out this stock, use it as a down payment on a house, and not have it effect my income for the year? If it looks like my income jumped up by $15k it will most certainly effect my income based repayment on my student loans and potentially launch me into a monthly payment that I cannot afford.
Lastly, is using this stock for a down payment and closing costs even a good idea at all?
Submitted April 04, 2019 at 11:43AM by jrt5251 https://ift.tt/2YYaVhw
