To calculate the purchase price after selling and reapplying for housing, follow these steps: First, determine the net sale proceeds from the previous home by subtracting selling costs (e.g., agent commissions, closing fees) from the sale price. Second, calculate the new down payment required for the replacement property, which may vary based on loan type (e.g., conforming, FHA, or VA loans). Third, factor in any additional funds needed to cover closing costs or bridge financing if applicable. The purchase price is derived by dividing the total available funds (net sale proceeds plus savings) by the (1

down payment percentage) to account for the loan amount. For example, if net proceeds are $300,000 and a 20% down payment is needed, the maximum purchase price would be $375,000 ($300,000 / 0.80).

This process ensures compliance with tax regulations and loan qualification standards. Capital gains tax exclusion rules (up to $250,000 single/$500,000 joint) may apply if the seller owned and lived in the home for two of the past five years, preserving equity for the new purchase. Loan eligibility hinges on debt-to-income ratios (typically ≤43%) and credit scores (FHA loans require 580+). Data from the 2023 Federal Housing Finance Agency (FHFA) shows median down payments for first-time buyers at 6-7%, while conforming loan limits remain at $746,599 in most areas. Selling a home and reapplying for housing allows applicants to leverage equity growth and tax benefits, with the U.S. Census Bureau noting a 15% increase in repeat homebuyers from 2021-2023. Proper calculation prevents underestimating affordability and avoids penalties like prepayment fees or higher interest rates.