Question
1st time buyer credit w/owner financing?
We are purchasing a home. It is our first home and the papers will be finalized this week. On next year's income tax return, can we get the "1st time buyer" home credit since the owner of the home is doing all the financing for us? All of our paperwork states "sale of real estate" and even our insurance company is requiring us to have home owners insurance instead of renters insurance (like as if it were a rent-to-own option with the home). Thanks! No, these people are not related to us
6 months ago - 7 answers
Best Answer
Chosen by Asker
The type of financing doesn't keep you from getting the credit, but unless the deed is actually changed into your name by 11/30/09 you wouldn't be eligible. Usually in rent-to-own or sales with owner financing, the deed isn't changed until the house is paid off, sometimes with a mortgage gotten within maybe 5 years. So what you need to find out is when the deed will actually be changed over. It would be very unusual, although not impossible, for it to be done immediately.
by Judy
6 months ago
Asker's Rating: 
Other Answers
Method of financing is irrelevant. As long as you are purchasing a house and meet all other qualifications, you will get the $8,000 tax credit (or 10% of purchase price if the house is less than $80,000).
by Steve D- 6 months ago
As long as the closing date is before December 1 AND you have the title of the house in your name, THEN you can claim it. If both of these or either do not happen, you cannot get the credit.
by Ryan M- 6 months ago
Yes. The owner in essence is acting as any bank would. They are the lender regardless that they are not truly a bank. And yes, you can even ammend your taxes to get it this year. These people are not relatives are they? If so that may be a problem.
by Veritas et Aequitas ()- 6 months ago
Yes, you can claim the deduction. On Owner Financing, make sure you make the payments to an escrow company so the escrow company will pay any liens or mortgages the seller has against the property before they pay the seller. If you don't have the escrow company pay any mortgages the seller has, the bank can foreclose and take the property if the seller stops making the mortgage payment.
by ranger_co_1_75- 6 months ago
As long as the deed is transfered into your name the other details do not matter.
by Landlord- 6 months ago
If the title is in your name then yes. If it is a rent to own and the title remains in the sellers name then no
by Pengy- 6 months ago