Teresa.. to qualify for the $7500 tax credit you could not have owned another home for 3 years prior to the closing date of your new home... and you would need to meet the income requirements for the credit ($75,000 MAGI for singles, $150,000 for married couples). The tax credit is equal to 10% of the purchase price up to $7,500, so if you bought a home for say $50,000 your credit would only be $5,000. A possible problem may exist if your co-borrower parent's name was put on the deed along with the mortgage papers... and has owned another home in the last 3 years. If that is the case then you may want to check with a CPA or the IRS to see if you still qualify. Or you can contact me by phone or email if you have any more questions.