According to IRC Publication 936 you would need to be obligated on the loan. IRC Reg 1.163-1(b) says that you need equitable or legal ownership to take the deduction. Which you seem to have. There are a number of Tax Court cases that address this situation and you should have a local tax professional review these cases along with your specific facts to make a determination of whether you can take this deduction.
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No. You would need to take out a loan in your name. I totally understand that you don't want to tie yourself to a loan at this time in your life. But the reality is, the upside for assuming that risk is being able to deduct the interest. The test for which party takes the deduction is not Ownership of the encumbered asset. The test is which party is ultimately liability for the loan.
I don't see any way to deduct the interest without assuming the loan. The IRS needs to receive a 1098 with your name on it. The bank you are paying the interest to sends that to them. When there is a deduction with no matching 1098, they will ask questions.
Since you are the legal owner of the home, you can deduct the mortgage interest. See the first sentence in (b) at http://www.taxalmanac.org/index.php/Reg._1.163-1 . You should hire an experienced CPA and point out this Regulation.Ask a similar question