What if only one spouse is employed now but gets a job in the future. This would obviously put them above the 5% increase. Do they have to make more than the current income threshold to trigger the recapture?

Federal Recapture Tax may apply if a homeowner: 1) Sells their home within the first nine years; AND 2) Has a net gain on the sale; AND 3) Household income exceeds allowable income limits as adjusted for each year. It is advised that borrower(s) speak with a tax professional.