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First Time Home Buyer Tax Credit



I received the $8000 tax credit and I signed a deed of trust March 1, 2010. I still have not gotten a home loan as of March 1, 2011. How long do I have to get a home loan?

=====ANSWER=====

Hello there Friend,

If I understand your question correctly, you signed a deed of trust during the purchase of a home without getting a mortgage over one year ago.

So I guess my question would be, who is holding the note on the property? Did you sign a land contract? Is the seller holding the note? Did you pay cash for the house?

A deed of trust involves three parties.


  • The Trustor, which is you, the borrower

  • The Trustee, which is an entity that holds "bare or legal" title

  • The Beneficiary, which is the lender

So, if you got a tax credit for $8,000 then I would have to assume you deserved it and think you probably do not need to be concerned about a mortgage.

I took a look at IRS form 5405 which details who qualifies for the tax credit. I could not see anywhere that you had to get a mortgage.

My guess is a person could have paid cash for a house and even gotten the tax credit.

I'm not a tax expert so please check with the professionals, but the instructions say if you "entered into a binding contract" before May 1st 2010 you should qualify. A binding contract could be the purchase or land contract if I'm reading this correctly.

Anyway, I must urge you to see someone who knows tax law better than me if you have any concerns.

Thanks for coming by my website. Please pay it forward by telling others or visiting my sponsors.

Kind Regards,

Jeff Ragan

For additional information I have written on the tax credit feel free to visit these links below;

$8000 Tax Credit

First Time Home Buyer Tax Credit




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