There is a brief window of opportunity for Sacramento home buyers

California Legislature has passed Governor Arnold Schwarzenegger's proposal (AB 183) to extend the $10,000 first time home buyer tax credit starting May 1, 2010 until December 31, 2010. He is expected to sign the bill soon.

The previous California tax credit limited to a total of $100 million for new home purchases only was exhausted eight months before the proposed deadline. The initial bill credited over 10,000 home buyers. The new bill appears to double the amount assistance.

Highlights of New California First Time Home Buyer Tax Credit

• $10,000 tax credit or 5% of purchase price (whichever is lower)
• First time home buyers only
• New and existing homes are eligible
• $200 million in funds available on a first come, first serve basis
• Credit given in 3 equal payments to a taxpayer's personal income tax returns over 3 year period (up to $3333.33 per year)

When additional information comes available and the bill is actually signed, I will post the updates. This is an extremely rare opportunity to take advantage of the reduced prices in homes, 40 year low in interest rates and to receive an incentive back from the state of California. Now, is the time to make a move. Apply for a loan now!