As you know, I am not a tax professional, nor is our Towne mortgage loan officer,  Alicia Westfall, who noted the following points about eligibility for the the first-time buyer tax credit for 2009, and its availability for use.  You should ALWAYS consult a tax professional before making decisions about tax-related issues. When you do that, get confirmation of the following information, noted by Alicia, that may apply to your situation:

When multiple borrowers purchase before Nov. 30, 2009:
Both are first-time homebuyers: both qualify for tax credit
Child and Parent: child ONLY qualifies for tax credit
Married Borrowers: both qualify for the tax credit
Married Borrowers: file jointly, qualify for all of the tax credit
Married Borrowers: file separately, qualify for ½ credit per spouse
Married Borrowers: one first-time homebuyer, one prior homeowner, neither eligible for the tax credit

Also, another caveat: the (up to) 8K tax credit is not available before the property has been transferred.  In other words, the credit is NOT available to use as a downpayment for the purchase. The property must have been purchased and transferred (recorded, in fact) in order for eligibility to exist. Some state housing agencies will work out a short term loan that will allow the tax credit to be used as a down payment.  Virginia Housing Development Authority does not have this ability or a program to do this in place at this time.

Call Alicia at 757.595.8895 or call me at 757.869.7070, if you are thinking about buying a house and have some questions. 

Copyright Melissa Mason Hoffman, 2009.  All content original unless otherwise noted.  Note: do not make real estate, financial, legal, or tax decisions without specific advice from the professional of your choice.