Another home buyer question

[JenMO]

Couple is given a double wide home by parents. They take out a loan to move the house, do the dirt work and make improvements. Their loan is started in Sept 07, but closes on April 15. Does the loan amount qualify for the first time homeowners credit? I know if they purchase from relatives, or are given a gift, that amount doesn't qualify, but this was a loan from the bank. Also, is it when the loan closes, or when they move in?

[BP.]

Couple is given a double wide home by parents. They take out a loan to move the house, do the dirt work and make improvements. Their loan is started in Sept 07, but closes on April 15. Does the loan amount qualify for the first time homeowners credit? I know if they purchase from relatives, or are given a gift, that amount doesn't qualify, but this was a loan from the bank. Also, is it when the loan closes, or when they move in?

Doesn't look they qualify according to Form 5405 instructions. Homes acquired from a relative don't count; doesn't seem to matter that financing was obtained.

http://www.irs.gov/pub/irs-pdf/f5405.pdf

[Gretel]

I still wonder if the additional cost for moving the house and preparing their lot (if it is their's) for the house wouldn't qualify.

[Jesse]

I would vote no. They did not purchase the house, it was given to them by the parents.