One thing no one mentioned is that as a co-borrower, you are responsible for that debt (loan). The loan would show up on a credit report, and would change your debt-to-income ratio. This would come into play when you start looking to purchase your own home. I agree with the others you need to talk to a lender. WIth rates at 50 year lows and the "first time home buyer credit" expired, you could still have a low mortgage payment. You need to see how much of a loan you can qualify for. They will consider all your debt, including the loan you co-signed on. Call Justin Lees with Paramount Equity. He can answer all your questions, no obligation. 916-218-7037.
Keller Willaims Realty
Sacramento and Placer County
The other important factor is credit. If you are a co-borrower on a mortgage, is that mortgage in good standing? If not, that will also make it difficult to qualify you for a loan. If you are no longer on the mortgage, was there any time when the loan was not current while you were on it?
The best starting point for any buyer is to talk with a mortgage professional. I can refer you to some experienced helpful loan consultants in your area that can go over your specific goals and give you options. If you have good credit, you may qualify for programs that can get you into a home for a small downpayment. If your credit has been affected (derrogatories/late payments), you can look at credit restoration or other strategies to improve your score so you can qualify for the best rates in 50 years.
I attached a link to a homebuyer's guide that gives you some good info on getting through the process.
Best of luck to you!
Krista Johnson, GRI, SFR
Broker Associate, Connect Realty.com Inc.
Kyle actually doesn't play anyone on tv, tax guy or otherwise. But he is foxy. Nonetheless, both Lyon agents--Elizabeth and Kyle--offer good insight. Now another quality Lyon agent, myself, asks you a question:
Are interested in the tax break as a first time home buyer, or are you concerned about getting into a good loan program as a first time homebuyer? Your best bet is to contact a quality lender ( I can refer you to several) to see if your co-sign impedes your ability to be a first time homebuyer, or limits the ability to lend you money (your debt to income ratio and your credit will be important factors).
Lastly, with interest rates as low as they are, it may not take a First Time Homebuyers "Program" to get you into a fabulous loan.
Feel free to contact me for a referral if you like.
The tax credits for both federal and CA (except for a new construction) are already gone. So I don't know why you even need the distinction. But if there was a tax credit, your accountant would be the person to tell you whether you can show as qualified as a first time homebuyer.
Sometimes, locales have special financing for first time homebuyer assistance programs. If you're thinking about it for a loan, then your lender would tell you whether you were qualified.
If you haven't yet bought a home, I'm betting Kyle is just the guy to help you do it.
Let me start by saying, I am not a tax professional, nor do I play one on TV, and I recommend you speak to one for a licensed, expert opinion.
Are you still the coborrower? If so, the answer is, "not likely." Is your question pertaining to the expired tax credit? If so, no worries, it expired on April 30th. However, if you have been in contract on a property since before that time, and you are closing by September 30th, and your name hasn't been attached to a mortgage for the past 3 years, then possibly. But like I said earlier, talk to you licensed tax professional for concrete answers.