First time home buyer credit + government grants

[ILLMAS]

Hello to all, would someone know if receiving government help disqualifies someone from getting the first time home buyer credit? A potential new TP called me to ask me if she recieves down payment assistance or a special interest rate because she is a school teacher, would she still qualifiy for the first time home credit? Apparently the school district she works has various packages to help out teachers buy a home.

[TAXBILLY]

I don't see any connection.

taxbilly

[jainen]

>>receiving government help disqualifies someone from getting the first time home buyer credit?<<

EVERYBODY gets government assistance because the loans are guaranteed by FNMA or FHA. The credit is based on the purchase price, not how much of that the taxpayer actually pays up front. Source of down payment is irrelevant for this purpose.