5/1/2010 UPDATE - While the home buyer credit is likely to lapse, there are some exceptions for certain groups who can claim the credit into 2011. For example Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the home buyer credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

2010 Federal Homebuyer Tax Credit Programs

2010 First-time and Step-up Federal New Buyer Tax Credit Programs

2010 First-time and Step-up Federal New Buyer Tax Credit - Cheatsheet

2010 First-time and Step-up Federal New Buyer Tax Credit - FAQ

Can I qualify for the federal tax credit if I use a Co-borrower on the mortgage?

The amount of information requests regarding the current $8000 tax credit has been plentiful over the last few months. Today, a potential buyer brought to my attention a scenario that should certainly interest a certain sector of the population. The soon to be first-time buyer asked:

If I am a first-time home buyer and I get a cosigner that already owns a property to help me get approved for a loan, am I still eligible for the tax credit?

My initial thought was that this person would not qualify because of the co-borrower’s current status as a homeowner; however after some research and great help from the woman who asked the question, I was able to determine that indeed, this person is eligible for the full credit. While the co-borrower, is not eligible because they are not a first-time buyer, the borrower most certainly is eligible as long as the home will be that person’s primary residence.

So those of you out there, that may need help from parents or other blood relatives to qualify based on income, there is GREAT NEWS!!! Even with your relative on the loan, you still qualify for the $8000 tax credit. If this was me, I would be out looking at homes that are already reduced in price now to take advantage of this too good to be true offer from our federal government. These “gifts” from the IRS certainly do not occur often and today is the time to act.