First Time Home Buy > Again

[BOB W]

I just did a first time home buyer and found out that if one spoused owned half the property and they were married and then the other spouse bought the other half , she does not get any credit(loan).

The key here is "they were married at the time of purchase".

Any feed back on this would be helpful.

A little background>>> Husband owned house with another friend, 50/50. Husband and wife lived in this home and paid all bills. Wife bought out friend and now they (t/p and spouse now own 100%). In reviewing the yes/no questions one question asks if husband owned the house or had an interest in the house. If I answer yes, no credit because they were married at the purchase date... If I answer no they get the credit.

Yes the husband owned the house but not the half that the wife bought. So I should answer that he did not own the house...??

[Gene V]

From Question and Answers:
What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

[BOB W]

Gene, thanks for the reply....... I did not see the thread below before I posted and other posts in previous weeks did not mention, or I did not see, the issue of "married" being a problem. O' well.....

Now to tell my client... I hate this.............