Bought house with owner financing, can I get the first time homebuyer tax credit?

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I just purchased my first home and it is through owner financing. I put $ 10,000 down and am making payments to the owner for ten years. We have a contract through a lawyer. Can I get the first time homebuyers credit just like someone would purchasing a home with a mortgage loan?? What kind of papers do I need to claim the credit? What does the IRS need?

3 Comments
  1. Reply
    tro
    May 3, 2011 at 2:36 am

    get the form 5405(at the http://www.irs.gov website) and answer the questions there
    once you comply with that file with your 1040 for 2009(or amend you 2008)

  2. Reply
    chatsplas
    May 3, 2011 at 3:25 am

    ONLY if you took title NOW, and are on a recorded deed.
    Many times with owner financing, you have to pay for some time, then get other financing and buy them out.
    So depends on the type of owner-financing you have. Who is in title, the seller/owner or you?

    It is likely there will be some new home buyer’s tax credit next year or an extension of this one. You can restructure your deal to qualify if you don’t currently. However, as seller, I wouldn’t give you deed yet.

  3. Reply
    sassy25
    May 3, 2011 at 3:41 am

    Did you close on the house and the deed now has your name added to it. You need a copy of the deed, closing papers.
    go to http;//irs.gov and download the form

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