Expert: Dick Dennis - 1/21/2009

Question
Hello,

(I'm not sure where to post this message, so please accept my apologies if this is not for you...)

I read about the new IRS First-Time Homebuyer Credit and would like to take advantage of it, but I am uncertain if I am considered a first time home buyer...this is why:

My husband co-signed for a house he sister was buying back when he was 18 yrs old...he never lived in it, just wanted to help her out. In 2005 she lost the home.

I co-signed for my mother as well when I was 19 yrs old, to help her out as well. I did live with her, but I did not have to pay rent. She still has that home and my name is still a co-signer.

April 22, 2008, my husband and I bought a home through countrywide  with an FHA fixed rate loan. This is what we consider our first home.

Given our situation, are we considered first time home buyers for this IRS credit?

Answer
If you have not bought or owned a home in the last three years, or three years before you do buy a house, then that is a first=time buyer situation. As for you signing for your mother, you did not say if you were on title with her as well. If you merely signed her loan but did not go on title with her, then I would say your present house with your husband is a first-time buyer. I wish you well.

Dick Dennis