Home Buying in Washington>Question Details

Larry P., Home Buyer in Washington

can you get the 8,000 credit if you pay cash?

Asked by Larry P., Washington Sun Feb 22, 2009

If someone in your family has access to a line of equity and is willing to deposit cash it into my bank account
and{ I }use that to pay cash for a house. I should qualify for the 8,000 tax credit right? It's MY FIRST HOME.

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Answers

6
Recording the sale (taking title) is the only requirement, as long as you have not owned a home in the last three years. Cash or type of financing has no bearing on the tax credit!! If someone gives, or lends the money, the legal arrangement with them, or not, has no rellevance to the tax credit. There is nothing preventing someone from taking a note secured by the property. Just have your attorney handle that paperwork.

Jean Bradford
Associate Broker, ABR, GRI, CRS, CRB
John L. Scott
Silverdale
0 votes Thank Flag Link Sat Mar 14, 2009
Tcb,

This is one we would definitely refer to an attorney or CPA......to be on the safe side.

Good luck
0 votes Thank Flag Link Sat Mar 14, 2009
Be CAREFUL about your family member depositing cash into your account!

Check with your Lender, to make sure that it won't interfer with your VODs (Verification of Deposits).
Sometimes Lenders will want a letter of explanation to find out why your average balance jumped.

Gift Money is sometimes better done directly and with a Gift Letter, to let the Bank know if you have to
pay it back, etc...

Work with a Real Estate Agent AND make sure to speak with a Lender to find out the best way to handle
that "gift"!!!
0 votes Thank Flag Link Fri Mar 13, 2009
Short answer is yes. Make sure you are the buyer on title. Doesn't matter where you get the money if you are the buyer on the purchase contract and the title, you are eligible for the tax credit ( if you're a first time buyer).

Sam DeBord
Seattle Real Estate
0 votes Thank Flag Link Tue Feb 24, 2009
You can qualify for the $8,000 as long as you have not bought a home within the last three years. If it is not your money, I would consult an attorney.
Kenzie
Web Reference: http://www.kenzierealty.com
0 votes Thank Flag Link Sun Feb 22, 2009
The only question I would have is whether you'd be considered the buyer if someone else paid all the cash (assuming you'd otherwise qualify for the credit--there are income limitations, etc.). You should consult your own attorney and/or accountant.
0 votes Thank Flag Link Sun Feb 22, 2009
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