Is this his first home purchase?

Is it his principal residence, too?

Yes, it's a mother daughter home, so he lives in the second section.

If he meets the requirements then yes he can claim the penalty exception. Is his name also on the deed (as opposed to just on the mortgage.)

Just curious - how does "he" fit into "mother daughter"?

I guess the house has like an attached apartment and that is what they call the daughter part. I am not sure about the deed. Does that matter?

Ok, Thanks for the clarification and all your help.

You're welcome.