In the state of California you can apply for two different tax credits one from the state Gov. and one from the Federal Gov.
The federal Gov. is giving a tax credit in the amount of 10% of the sale price or 8000.00 which ever is less.
The state of California is giving a tax credit in the amount of 5% of the sale price or 10,000.00 which ever is less.
Neither is a loan nor does it have to be repaid.
What's the catch, you ask? Well the federal tax credit has a limit on the income amount on the buyer can earn 75,000 for a single taxpayers and 150,000 for married taxpayers. Also, they must be first time buyers and purchase the home between 01/01/2009 and 12/01/2009
The state tax credit does not have a limit on your income, but it does require you to be purchasing a newly built home, between 03/01/2009 and 03/01/2010. the credit is not a loan as long as the home remains your primary residence for two years.
Home buyers can tap both programs and get a possible 18,000 tax credit, but time is running out to cash in on the opportunity. California set aside 100 million for the program and it is depleting faster than expected. Also the end of the federal program (12/01/2009) is fast approaching. Home buyers who don't act now could end up out of luck.....
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