The Daily Real Estate News reported that the Internal Revenue Service (IRS) has published new guidelines for eligibility for the home buyer credit when there are co-borrowers purchasing the home.
When a parent of an adult child co-signs for the mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The parent does not qualify for claiming the tax credit, however, if the child has not owned a home in the last three years and qualifies based on income, he or she can claim the whole $8,000 credit.
When an unmarried couple co-purchases a home and only one of them is eligible for the credit, he or she can claim the full $8,000 credit.
Source: The Weekly Real Estate News (12/11/2009)