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Cash home purchase then got a mortgage

We purchased our home with cash we borrowed from our retirement. We then took out a mortgage to pay back our retirement. Does that count as an original loan for buying our home?

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Level 14

Cash home purchase then got a mortgage

depends how long you waited to close on the mortgage... the mortgage closing date can't be more than 90 days after the home closing date to qualify as deductible mortgage debt


see IRS publication 936 , page 10, 1st column at the very bottom:



1. You buy your home within 90 days before or after the date you take out the mortgage. The home acquisition debt is limited to the home's cost, plus the cost of any substantial improvements within the limit