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Sacramento 1st Time Home Buyers will be eagerly placing offers on homes for sale in order to take advantage of CA First Time Homebuyer tax credit that begins May 1, 2010 and ends December 31, 2010.
Who doesn’t love FREE money? What a nice package this is for all those eager Sacramento home buyers and First Time Home Buyers!
This is not to be confused with the Federal Home Buyer Tax Credit ending completely on July 1, 2010 where the home buyer must have an accepted contract from the seller by April 30, 2010.
This new CA Home Buyer tax credit is a little different than the Federal tax credit.
The State of CA has a total of $2 million dollars to help First Time Home Buyers and Home Buyers who want to buy up or move in to a smaller home and the State is breaking the $2 million up into two sections.
- $1 Million will be available starting May 1, 2010 for 1st Home Buyer who are buying existing homes and allowing up to $10,000 or 5% of the purchase price toward their CA taxes. (Watch Video & See if YOU are a First Time Home Buyer)
- $1 Million will be available starting May 1, 2010 for Home Buyers purchasing a brand new home from a builder. You don’t have to be a 1st Time Home Buyer for this tax credit.
There is no double dipping with this CA home buyer tax credit so if you were eligible in 2009 you won’t be eligible for this one.
It’s important to note here that if you are a home buyer interested in a NEW Home from a builder be sure to contact a Realtor ® before going out to see new homes. You need representation and not rely on the builder to represent you.
What makes this tax credit different from the other home buyer and first time home buyer tax credits is that there is no income limitations nor price caps placed on how much the home costs. Unlike the Federal tax credit, this is not a one time shot at free money from the state. The CA tax credit must be split over 3 years in equal installments. There is a requirement that the house be the primary residence and you must live in the house at least 2 years or you forfeit the tax credit and pay it back to the State of CA. This home buyer tax credit does not apply to relatives of the seller.
When the $2 million allocated for this tax credit has been exceeded, it’s over. First come, first served! You must have a Certificate of Allocation and fill out an application in order to apply for any of the home buyer tax credits. Be sure to read and the State of CA Franchise Tax Board 2010 Tax Credit for New Home/First Time Buyer where updates and the application will be available starting May 1, 2010.
The biggy to remember is that home buyers MUST have an accepted contract by Dec. 31, 2010 to be eligible and close before August 1, 2011.
Can’t wait to help home buyers in and around Sacramento get their FREE tax credit. As always, be sure to check out all the homes for sale and let me know when you are ready to get started!
Other Helpful Home Buyer Articles:
What EVERY Sacramento Home Buyer MUST Know
First Time Homebuyer’s Check-Off List – Part 1
First Time Homebuyers Check-Off List – Part II – Write An Offer
Good morning,
Thanks for the info and I have a question. You mentioned no double-dipping, i.e. if you qualified in 2009 you would not be eligible for the new May 1st credit. So my question, if a buyer is under contract now, (by April 30th) and closed anytime in May, would they be eligible for the new CA May 1st credit?
Lynda,
Very good question! Yes. The double dipping comes into play with CA home buyer and 1st time home buyer tax credit to my understanding. The double dipping was discussed in that venue since both could apply to a buyer but they have to chose one over the other and they must fill out an application. The Federal money is totally separate to my understanding.