As a mortgage broker I have looked into form 5405 at http://www.irs.gov As long as you have not owned a home in the last three years you are eligible for the $8,000 tax credit. Bear in mind, you do not have to pay this credit back to the goverment as long as you do not sell this home in the next three years. Your primary borrower would not be able to claim this credit as she is not a first time homebuyer.

Hope this helps. If you need further information or would like to apply with my company for a mortgage please phone me at 509-299-7386. Or apply at http://www.mortgagesbyjt.com Best Wishes!

Jennifer
1st Rate Home Mortgage
Spokane WA

I was asked this just last week and the answer came back no if the 2 buyers were filing jointly. However if that does not apply to your situation and you wish to do some research yourself try the website below.

You probably will not qualify for first time home buyers tax credit. I agree that you should talk to a good accountant. Remember, you only have till Nov. 30th to qualify.

It's very likely that you can claim this credit. There have not been a lot of tax guidelines release on your specific situation, so you're going to have to talk to a tax advisor directly.