Home Buying in El Cerrito>Question Details

Katie P, Home Buyer in El Cerrito, CA

I am interested in buying a home in the East Bay, CA. If I had a co-signer for the Mortgage that owns a home could I still qualify for the $8000?

Asked by Katie P, El Cerrito, CA Wed Oct 7, 2009

I am interested in buying a home but am not sure I will be able to before December 1st. I am hoping they extend the $8000 tax credit for First Time home owners. I was wondering what options are available to have someone co-sign on your Mortgage? I have family members that would be willing to co-sign on a Mortgage for me. They would not be living with me and also own their home. Would this disqualify me being a first time home buyer?

Also is it still possible these days to get a loan with 5% down?

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This is out of date (above) , but currently you need about 1/3 of the cost of a project to get a loan for the balance, fixed, at 3% or even lower. If a qualified person like you mention is willing to co sign to get you started there is nothing wrong with that. As an Architect, as well, I would suggest doing the plans so it fits into a specific budget or the project will not be feasible, loan or otherwise. Do you want to have a set of plans that does this? Or what would you do, buy a used house and live in it? That is a possibility, but if you can afford to buy you can certainly afford to build, is my point, so why would you do that?
0 votes Thank Flag Link Tue Sep 25, 2012
As far as the co-signers, it depends if their current debt. The lender will review BOTH signers of the loan and underwrite them the same for each. So if your co-signer is deep in debt, then it's not going to fly very well.
0 votes Thank Flag Link Wed Oct 7, 2009
Here are a couple of links with FAQs about first time home buyer

http://www.federalhousingtaxcredit.com/2009/faq.php

And when in doubt, check with the IRS

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Just be careful....the IRS will prosecute for false claims.

Err on the side of caution...
0 votes Thank Flag Link Wed Oct 7, 2009
from the IRS.gov website:
S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

FHA loans allow 3.5% down payment, so there' still time to buy!
0 votes Thank Flag Link Wed Oct 7, 2009
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