If I purchase a home through Owner Finance, am I still qualified for the 2009 tax credit?
My boyfriend is wanting to purchase a home from a builder friend of his through owner finance. There will be a written contract signed by an attorney and everything. He just wants to know if he will still quailfy for the First- Time Home Buyers Tax Credit for 2009 if he makes the purchase this way.
Tagged with: first time home • First time home buyers • owner finance • tax credit • time home buyers
Filed under: Home Tax Credits programs
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All that really matters is if the deed was transferred in your/his name.
If the contract transfers the deed later, which will happen if there are any liens or mortgages, you will not be able to claim the credit, as you do not really own it.
As long as he closes on the purchase by the deadline, the method of financing does not matter – he needs to go to closing by November 30 to qualify.
The source or method financing is irrelevant. The key to qualifing is to have the title and deed transferred to his name before November 30. If your BF intends to engage in some sort of land contract in which title remains in the owner’s name until paid off, he won’t qualify.
The owner financing does not make a difference. You should still be able to qualify for the credit as long as the purchase price is over 150K.