Land Trust as First Time Home Buyer - Posted by Rhonda

Posted by James - Michigan Investor on April 19, 2009 at 06:51:27:

I do not know why this wouldn’t be allowable.

I’m not an atty either, so this really isn’t good advice. :smiley:

Land Trust as First Time Home Buyer - Posted by Rhonda

Posted by Rhonda on April 15, 2009 at 18:19:33:

Can a home purchased in the name of a land trust qualify for the first time home buyer tax credit of $8000? (Assuming the land trust beneficiary is a legitimate first time home buyer)

Re: Land Trust as First Time Home Buyer - Posted by Rudy-Austin

Posted by Rudy-Austin on April 25, 2009 at 20:24:43:

probably not ask your CPA.

Use GStG law here - Posted by John Merchant

Posted by John Merchant on April 19, 2009 at 10:08:25:

Garn St Germaine Fed law* says anybody can freely (well,not really considering attys’ fees :wink: convey his RE into his own trust w/o triggering DOS clause.

But, as JT-IN says the time to do this is AFTER you’ve bought it w new FHA loan using $8k tax credit.

*Archive search here or on Google for Garn St Germaine will unearth more info than you can read in a month.

Have you ever seen a 1st time buyer - Posted by JT-IN

Posted by JT-IN on April 19, 2009 at 08:37:25:

Purchase a home in a Land Trust…? I haven’t, and can’t imagine any lender that would make such a mtg for a purchase by a Trust. The usual and customery method would be to make the purchase personally, then simultaneously or delayed a day or so, transfer the property to the Trust.

But, to answer the question… I would think that a 1st buyer would NOT qualify for the tax credit if purchased by the Trust. Property owned by a Land Trust is NOT owned by the Individual. These are two distinct and seperate entities. Much like the question being, if I purchased my first home in the name of XYZ, LLC, would I qualify for the 1st time buyers taxcredit…? NO, the entity is NOT you, it is a seperate entity similar to that of a trust…

Now, here is a question for you… Tell me which lender will make a mtg or DOT to a Trust…? FHA will not, and they are the originator of the vast majority of 1st time buyer mtgs today.