I have a client wishing to buy a home but he does not qualify as a first time home buyer. His girlfriend however does. My client makes all the money and has the qualifying credit credit to purchase. My client is wanting to purchase the home and have his girlfriend be on title with him but not the actual loan itself. Will his girlfriend qualify for the first time home buyers tax credit?

In my opinion, no! The Girl Friend, though on the title, must be legally obligated to repay the loan in order to qualify for the credit.

If she is added to the loan as a joint owner, with joint and several liability to repay the loan, she WOULD then qualify for the credit in the amount of $4,000, or 5% of the purchase price of the home, whichever is less.