Tax Credit - Update

What happens when a first time home buyer buys a home with a parent co-borrowing?

This is a question I was asked earlier today.  The IRS says that when a home owning parent co-signs for a mortgage and both names appear on the note, under some circumstances, the first time buyer can qualify for the entire amount.


The parent won't qualify for any part of the credit, but if the child hasn't owned a home in the last 3 years and can qualify for the loan, he or she can claim the entire $8,000 credit.
When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Please consult your tax advisor for details.  The above information is a summary of a lengthly Washington Post article.