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If the house is purchased jointly by two people not married can one qualify for credit

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November 09 - US
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Answers (5)

Profile picture for MikeEmery
Real Estate Agent
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Since December 2008

My assumption in your question is you think that one of you won't qualify for the tax credit.

So assuming one of you does not qualify, the other party can still claim the First Time Homebuyers Credit - assuming they qualify for the program.

The IRS doesn't care if there are two names on the mortgage. What they DO care about is that if you collect the credit that you qualify for the program. But buying a home with someone who does not qualify for the tax credit does not disqualify the other party from collecting the credit. They would collect 100 percent of the credit, up to 8k.

Just remember the person who is collecting the credit MUST live in the home for the next three years or the money must be repaid to the IRS. 
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November 09
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Since August 2009

Is this the first time buyer's tax credit or are you a Seller buying a different home?

I would talk to a tax person, since you need to bring docs to prove your purchase anyway.  I do know that if you're married and filing separate, you would get up to $4,000 each or 5% of the home sales price each-- whichever is less.

If you're a Home Seller and are married you get up to $6,500 when you buy a home up to $800,000.  (1/2 each married filling tax return separately)

Hope this helps.

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November 09
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Are one of you already a home owner? If yes, the non-home owner can qualify.

http://www.irs.gov/newsroom/article/0,,id=206294,00.html
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November 09
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Since July 2009

i'm guessing you're asking about the tax credit-- I believe the answer is NO.  The way I understand it, if both names are on the title and mortgage, then both people would have to qualify in order to get the tax credit. 

the other option would be to only have the person who qualifies apply for the mortgage and be put on the title.  Then, once you get the credit, add the other person to the title.  But, in order to do this, the individual would have to be able to get mortgage approval based on their own income only.

my advice-- check with a real estate attorney--- which is a very good idea anyway, if you're planning to buy a home with someone you're not married to.
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November 09
Profile picture for CA UMB
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Since January 2009

Both parties can be on Title. All parties on a loan application will need to  qualify credit-wise.

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November 09
 

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