Profile picture for beatrizflores

if I buy a home that owner will finance. Can I qualify for the $8,ooo credit?

  • November 02 2009 - Yuma
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Answers (6)

Yes but with qualifications.

The IRS has specific rules regarding Contract for Deed or Land Contract purchases. 

 If the taxpayer obtains the "benefits and burdens" of ownership of aresidence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09)
  • November 03 2009
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Yes, you would still qualify for the $8,000 tax credit. This is assuming
you meet all of the other requirements. I would make sure you get
everything (the loan) in writing and have Title prepare all paperwork,
  • November 03 2009
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Yes you would still qualify assuming you meet all of the requirements.
double check to make sure you would make the requirements and then consult a tax professional in regards to the paperwork
  • November 03 2009
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Profile picture for wetdawgs
You would have to ensure that this owner financing has the title etc coming to you, rather than the owner holding these until you've paid it off.
  • November 02 2009
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You can qualify for the tax credit as long as the property is your primary residence and the person you are buying the home from is not a member of your family.
  • November 02 2009
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If you purchase a owner financed home you still qualify for the $8,000 credit.

Jeff Daley

[content removed by moderator]

  • November 02 2009
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