I think you're looking for the second part of question number 1 on the form they'll file to claim the credit: http://www.irs.gov/pub/irs-pdf/f5405.pdf. Where you might hit a brick wall is number 7 under "Who Cannot Claim the Credit."

I hope this helps.

Lenny:

When we were told about the tax credit they made specific criteria for the credits..

First you had to be a first time homeowner or not have owned a home in three years.
Second, there were income restrictions for single up to$75,000 and married up to $125,000.
Lastly, her parents to my knowledge can give her money for the down payment. (gifted) BUT they can be one the deed!
I would contact a mortgage broker-he will be more knowledgeable with this or an accountant or tax attorney..
Hope this was helpful!

Go to the infernal revenue service and ask them. They run the program they have the answers. Get the reply in writing. But be aware, the IRS gets it wrong very often also. SO you may want to ask several different agents to get the right answer. They also have a 800 number to call.

At least if you get it in writing and they tell you wrong it would save jail time for fraud.

Hi Lenny,
If she goes on the title herself, she would get the credit.
If the parents take title with her, she would not, in my opinion because this is not their (all of them) primary residence. Just my interpretation.
Colin

You may want to check your states webpage, Realtor.com,but i would look at your states webpage for the state of mnn.

I want to clarify there will be no mortgage. Her parents are giving cash.

Let me know if you get a final answer on this as I have a client in a similar situation.

Hi Lenny,
From the scenario you describe, as long as she is the principal, and her parents are co-signers on the mortgage only, sounds like she would be eligable from everything I've read. I would consult your tax attourney just for clarification. There has been allot of fraud, and the IRS is going to crack down.
Good Luck,
Colin