Thank you for using justanswer. I'm assuming that you have checked the criteria and already know that both you and your husband (since you are purchasing the property jointly) qualify for the credit, meaning neither one of you had ownership in a home for 3 years prior to the purchase of this home, that your AGI is within the limits, etc. and that you filed Form 5405 First-Time Homebuyer Credit and Repayment of the Credit
IRS's guidelines state that for a tax payer to qualify for the credit, he/she must obtain the "benefits and burdens" of ownership of a residence in a seller financing arrangement, even if the seller retains title until the final payment is met. IRS further goes on to state the the "benefits/burdens" of home ownership include:
the right of possession,
the right to obtain legal title upon full payment of the purchase price,
the right to construct improvements,
the obligation to pay property taxes,
the risk of loss,
the responsibility to insure the property and
the duty to maintain the property.
Since these are the IRS guidelines and quoted specifically from their website, I would have the rental company draw up a statement that includes the above wording, and be sure that all signatures are notarized. Further, the IRS website states that if a person purchases a qualifying home by means other than a conventional mortgage, meaning a HUD statement would not be available, as long as the settlement statement is valid according to local law
, it will be accepted, so it might be worth having a local attorney give any document you want to submit is in compliance
Please see below:First Time Homebuyer Credit
I hope this helps.
Edited by Anne on 6/2/2010 at 11:25 PM EST