3 thoughts on “what will be acceptable proof for a homebuyer credit on a seller financing agreement if all stipulations r met?”

  1. If you met the deadlines, yes, you can send the contract.

    The issue isn’t the seller financing, it’s whether or not you have title to the property and legally own it. With contract for deed situations, the title doesn’t pass until you have paid off the note.

    In those cases, the IRS has to look at the contract to determine if you had equitable ownership.

    "If the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include:
    1. the right of possession,
    2. the right to obtain legal title upon full payment of the purchase price,
    3. the right to construct improvements,
    4. the obligation to pay property taxes,
    5. the risk of loss,
    6. the responsibility to insure the property and
    7. the duty to maintain the property"

  3. The required proof is stated on the irs website. Basically, if you are a first-time homebuyer you will need a signed copy of the HUD-1 settlement statement. If you are a repeat buyer, you will also need to provide insurance declaration pages or property tax statements for the last five years showing you lived in the old home as your main residence.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.