Can Married Couples Have 2 Primary Residences?

[Catherine Call]

This might be a Utah/Nevada specific question, but if you have experience with this I'd love to hear it!

My husband and I own a home in Nevada and would like to buy a second home in Utah, three hours away, to rent to college students. 

Is it legal for me to move to Utah and declare the UT property as my primary residence to have a 3% down payment? My husband would keep his primary residence in Nevada. There are two units in the NV home so I would live in one and rent out the other. Then in a year I would move back to Nevada or to another multi unit home in Utah.

I do not have a significant income but his income would easily cover both mortgages. Both of our names are on our current mortgage. 

My husband wants to keep his Nevada state residency to file income tax there (NV doesn't have state income tax) but we would like to file jointly for federal income taxes.

On the Utah State tax website it says: 

"A married couple who files a joint federal return may file separate Utah returns ONLY IF:

one spouse is a full-year Utah resident, AND

the other spouse is a full-year nonresident."

https://incometax.utah.gov/instructions/married-couples

We would spend roughly half the year in each location, my husband will spend more time in NV running his business and I will spend more time in UT setting up the basement rental but the majority of our time will hopefully be together. I will also get a UT drivers license, register to vote, and make community connections, but I will be traveling to NV for prenatal appointments and giving birth in NV.

Has anyone done this? Is this legal? Are these huge red flags for the state tax commissions and the IRS?

If you don't know the answer but know who we should ask (CPA? Lawyer?) that would also be helpful!

[Jason Wray]

Catherine,

Fast and easy answer is No. Your husband cannot claim or buy (2) primary homes that would be mortgage fraud. I understand your question but the correct way to buy the home would be to use an investment loan putting 15% down since its a 2 unit (Duplex). If it was a single family or 1 unit you would only need to put 10% down as a Second home or Vacation home.

If you own the home in NV simply do a cash out refinance and take out a little cash to use as the down payment. This will help solve the problem and you can buy the house that sounds like a great future investment home.

Keep in mind for further detail even if you are living in the home its not your husbands primary so if they are using his income it has to go off his occupancy. Plus you are married and under these circumstances the underwriter would ask why and ask for a divorce decree or reason for separation. There is "No rebuttal" to this question trust me I have seen a hundred scenarios over my 18+ years in the mortgage banking world.

Again I would suggest buying as a investment since its a 2 unit only 15% down.