NY - Long Island Agents..I have a tricky scenario

[John Gibbons]

The parents of a young couple are purchasing a home for them. They applied for a loan and are approved however, because they already own a home and are not planning on selling it, it is considered an investment property. The parents won't be living in the home and in order to be eligible for the STAR tax deduction...it must be your primary residence..They also already claim this exemption on their home which they still currently hold a mortgage on. (See Link..I hope that is permitted STAR Eligibility).

Now here is where it gets tricky, although the parents are putting the down payment and taking out the mortgage, the young couple will be living there and making the mortgage payments. Is there a way for the couple to pay a tax rate that uses the STAR tax deduction? Would simply adding their names to the title do the trick to show ownership and primary residence for some members on the title...or is there more to it than that?

On a side note..The reason they chose this route is because the young couple are married and the husband has poor credit and doesn't qualify for a loan. They have 6 year excellent rental history with multiple references but again do not qualify for the loan so his parents are assisting them.