Posted on: 04th Jun, 2010 03:09 am
We just closed on a house yesterday.
My husband and I are both first time homebuyers. However, we are both going to be students where we are moving, so we did not qualify for a conventional loan even though we had a 20% downpayment. In order to avoid the mortgage insurance on an FHA loan, my parents got a mortgage on the house as their second home. As such, my parents signed for us as POA and we didn't see any of the closing documents (it was done as a mail away).
However, my husband and I are on the deed, will be using the home as our primary residence and will be the ones making the mortgage payments.
The problem is that our HUD-1 (settlement statement) does not include either my husband's or my name, just my parents. And this is the document that the IRS wants to prove that we own our home.
Everyone told me that we'd still qualify for the tax credit because ownership and the mortgage are two different things. However, if our names aren't on the HUD, isn't that a problem?
My husband and I are both first time homebuyers. However, we are both going to be students where we are moving, so we did not qualify for a conventional loan even though we had a 20% downpayment. In order to avoid the mortgage insurance on an FHA loan, my parents got a mortgage on the house as their second home. As such, my parents signed for us as POA and we didn't see any of the closing documents (it was done as a mail away).
However, my husband and I are on the deed, will be using the home as our primary residence and will be the ones making the mortgage payments.
The problem is that our HUD-1 (settlement statement) does not include either my husband's or my name, just my parents. And this is the document that the IRS wants to prove that we own our home.
Everyone told me that we'd still qualify for the tax credit because ownership and the mortgage are two different things. However, if our names aren't on the HUD, isn't that a problem?
Hi asuhey,
As far as I know, the HUD-1 Settlement Statement is a form which is used to itemize services and fees that are charged to the borrower by the lender or broker. If your name is mentioned on the property deed, then you will be able to claim the first time home buyer's tax credit. However, as the mortgage has been taken out by your parents, isn't their name mentioned on the property deed? If their name is mentioned on the property deed, then you may not be able to claim the tax credit.
Thanks
As far as I know, the HUD-1 Settlement Statement is a form which is used to itemize services and fees that are charged to the borrower by the lender or broker. If your name is mentioned on the property deed, then you will be able to claim the first time home buyer's tax credit. However, as the mortgage has been taken out by your parents, isn't their name mentioned on the property deed? If their name is mentioned on the property deed, then you may not be able to claim the tax credit.
Thanks