First Time Home Buyers Federal Tax Credit?

How can we buy a home for our son who is single and unemployed? Only as cosigners on his mortgage or some other method?



Now with this purchase, would he be eligible for the $8000 first time home buyer tax credit? It is not a deduction, so as far as we understand, he should simply file a tax return along with the tax credit application and he would get it. Is this correct?



Next, the home we would buy would be a 3 bedroom house, so he would sub-let the place to pay his bills, mortgage, and etc expenses. He would still have no income other than the money from the sub-let. Would he need to files an income tax return on this if the annual income is below a certain income? Also, would this affect his eligibility for the tax credit?



In Texas, would he be eligible for any additional credits or grants to aid him in this purchase?



Thank you for your help/advice in advance!First Time Home Buyers Federal Tax Credit?
If you're buying it for him, no he isn't the buyer so isn't eligible. All of the applications for the credit are being audited, and a transaction like this won't be approved.First Time Home Buyers Federal Tax Credit?
What you are proposing won't qualify him for the credit. HE has to buy the home and live in it for 3 full years to be eligible for the credit. If he turns around and leases it out, he's not eligible for the credit and must repay it if he didn't live in the home for 3 full years as his principal residence. If he's renting it from you, he's not the owner and can't claim the credit. And since you are not living in it, you can't claim it either.



While the ';Bank of Mom %26amp; Dad'; could fund a mortgage, be SURE that it meets the ';smell test'; of an arms length transaction (contract, property lien securing the mortgage, market rate interest rate, monthly payments made on time, etc.) or the IRS will dismiss it as a straw-man purchase and disqualify him for the credit.
tho your intentions are probably good, this looks like an accident waiting to happen

your son can't qualify for a home loan, he probably can't afford it, especially when you indicate he would lease some of it out to pay the mortgage, this is probably just about the same scenario that a lot of the foreclosures in effect today

people bite off more than they could chew and in the end you would be out the money and the house