Real Estate Blog - $10,000 or $8000 Tax Credit? Some Buyers Can Take Both

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$10,000 or $8000 Tax Credit? Some Buyers Can Take Both

Last night as I listened to the local news I heard a reporter make two errors as he spoke about the housing market. First, he reported you need 3% down when obtaining your FHA loan. Wrong, it is now 3.5%. Secondly, he said the $10,000 tax credit restricts income to $75,000 for an individual or $150,000 for a married couple and it only applies to 1^st time homebuyers. Actually, the $10,000 credit applies to California new construction and is not restricted by income or to 1^st time buyers. Time limits and other restrictions do apply.

In California, there are two separate tax credits available. The $8000 tax credit and the $10,000 new construction tax credit. It is possible for the same buyer to qualify for a total of $18,000 in tax credits. However, certain requirements must be met to qualify.

Bottom line; don't take the news as gospel. It is a compilation of information truncated into sound bytes. Sometimes the facts get a little twisted and the truth is laced with misinformation.

Consult a professional to determine your eligibility for the aforementioned tax credits.

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Norma Toering & Team RE/MAX Palos Verdes Realty
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South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

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Posted by Norma Toering Rolling Hills & Palos Verdes Property on 04/25/2009 02:16 PM

Comments (2)

Tax Credits in the ActiveRain Channel

10, 000 new construction tax credit, 8000 1st time buyer tax credit, norma toering, buyers tips

Originally posted at: Palos Verdes Lifestyle - Norma Toering's PV Real Estate Blog: $10,000 or $8000 Tax Credit? Some Buyers Can Take Both

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2 Comments on $10,000 or $8000 Tax Credit? Some Buyers Can Take Both

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Norma,

Well put! Way to set the record straight.

This is the first I have heard of the new construction incentive in California. That's not overly shocking, as I'm in Michigan, but I try to stay abreast of what other state's are offering.

Thanks for updating me!

Tim - It's our job to keep the consumers informed. There is so much information floating around it can get more than a little confusing.

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