The link provided by Bill pretty much addresses this question, though you can always go to a professional tax advisor for his/her interpretation.

Here is the pertinent excerpt:

"First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit."


My interpretation of that is that it does not matter who is paying for the house, it matters as to whose name is on the house title. Furthermore, if any one of a married couple doesn't qualify, then the whole couple doesn't qualify if you file your taxes jointly.

But then, I'm not a professional tax advisor, so don't take my word, seek professional advice.

You can also see the Q&A http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Particularly the answer to "Who cannot take the credit" uses the words "...or had an ownership interest in ..."

I'm trying to understand... Is it that you and your husband want to purchase a home for the first time and he is currently on the deed to his parent's home? I don't have an answer as this seemed like something common to me that I have questioned from the start (although it's not my situation). I did want to clarify if this is the case though because I'd like to see the responses if so.

You do not qualify for the tax credit. Visit http://www.irs.gov for more info. Your parents would qualify if they bought the house as a primary residence and have owned a house in the last 3 years. This is a first time home buyers product, not a first time renting from mom and dad product.