There's a certain amount of money the state of CA set aside for this credit and once that amount is reached - it's gone.
And if you are not on title, many lenders will not accept your cosigning. The reason for this is that you personally would have little to lose if you didn't make the payments, while someone who lives in the home has more to lose and it makes the loan a bit more secure. Sit down with a reputable lender and review their requirements to see if it is feasible. I admire your wanting you help your child get a head start in homeownership, but it may be very difficult to also get the tax credit.
Good luck to you!
lenders have several qualifying factors that a buyer must meet to get a loan. Some of the factor are job stability, income ratios, credit scores, etc. If the buyer doesn't qualify, some loan programs and depending on the particulars, may have the option to have a co-signer/co-borrower. I'm not an accountant or lender and refer you to talk with them, but in my experience this buyer would not meet most of the qualifying factors and if you enter the process and qualify, it would make you the buyer/borrower . . . which means you're buying the house. If need help with lender information please let me know. Best to you!
I suggest you first speak to a mortgage broker......and an accountant...... because in essence, YOU will be buying her a home. Make sure there aren't any tax consequences.
Truthfully, with no income, I don't see how she can even be part of the mortgage process...........check it out.
Laura Reilly- Foreclosure â€œINVESTâ€igator USA Realtor dre 01760446
â€œI have a problem with too much money. I can't reinvest it fast enoughâ€ Robert Kiyosaki