Posted on: 20th Jul, 2009 04:40 pm
I am looking to get a mortgage but I know that I have too much debt- My mom will co-sign but we are worried that I will not qualify for the FHA loans and the $8000 first time home buyer credit because she currently has a mortgage.... Any Help???
hollyaha
Welcoem to the forum
You are correct, if you buy the house jointly with your monther you will loose the $8000/- tax credit
These are the guidign rules for $8000/- tax credit.
- The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
-The tax credit does not have to be repaid, if you stay in the house for atleast 3 years.
-The tax credit is equal to 10 percent of the homes purchase price up to a maximum of $8,000.
-The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
-Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
-For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse
Good luck
Welcoem to the forum
You are correct, if you buy the house jointly with your monther you will loose the $8000/- tax credit
These are the guidign rules for $8000/- tax credit.
- The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
-The tax credit does not have to be repaid, if you stay in the house for atleast 3 years.
-The tax credit is equal to 10 percent of the homes purchase price up to a maximum of $8,000.
-The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
-Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
-For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse
Good luck
This was unclear to me- can you explain what this means?!! Thanks!
What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.
What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.
Hi, Yes i dont think you will qualify for the tax credit.
hollyaha
It was very specific to married couple, but in general if you are buyng the house in partnership with some one else, then both of them need to meet the requirements to qualify for the tax credit
good luck and feel free to ask
It was very specific to married couple, but in general if you are buyng the house in partnership with some one else, then both of them need to meet the requirements to qualify for the tax credit
good luck and feel free to ask