taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.
With seller financing, the seller agrees to transfer title to the buyer in exchange for a note and a secured interest in the house. The note is paid off just like a mortgage but is paid to the seller instead of the bank.
Depending on the terms of your purchase agreement with the seller, you may be eligible for the tax credit.