I don't like the way this is phrased. It sounds a tiny bit like a kind of scam, so I hope this is a "friend" you know very well and trust. I can't think of any reason why your name would be on a loan but not on a deed.

As far as the first-time home-buyers credit, note the word "buyer". You can to show that you bought the property in order to qualify. Also I'm suspicious that a person can quit-claim a property to someone not on the deed in the first place. Typically quit-claim like this would be used for a husband and wife, in a divorce, where the property is quit-claimed to the other who *already has an existing claim*. If you have no existing claim, then you would need to buy the property or possibly have it gifted to you. It's doubtful a lender would approve of that sort of transaction, so you may trigger a "due on sale" clause even though there's no sale !

Good morning Jeremy~
Erica Pittman-Gaynor with Keller Williams. Each transaction and situation is unique and different. I agree with Andy that this is a question best discussed with a CPA. I would be happy to give you the name & number af a local CPA I use.
Erica
(831)818-4123

Hi,

Before an expert answers your question, I think you may have to provide more details such as

First, what is the vesting you and your friend have tenancy in common or joint tenancy?

Second, do you currently have any loan on the property? Who is the borrower?

Third, does your friend still have good relationship with you?

Forth, how much do you have your friend earn?

In CA, What I or other CA real estate pros here can answer you is real estate part only such as real estate market value, loan possibility, real estate contracts and real estate trend. We have to legal authority to answer any question about tax and general legal issues. I know a lot of real estate pros here do that but I have to be honest to say that is illegal. It may be criminal conduct.

If you ask a general question, everybody may answer it because they do not guarantee their answers. You are asking a particular question here. Then only tax experts or legal experts can answer their particular part.

Andy