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CA State Tax Credit Is Gone

By
Mortgage and Lending with Caliber Home Loans NMLS#284800

Sorry, I was busy closing loans and forgot to update everyone about the CA State Tax Credit for 1st Time Homebuyers.  As of 8/15/2010, the Franchise Tax Board (FTB) stopped accepting applications for the State 1st Time Homebuyer Tax Credit.

Per the FTB site:

FTB has stopped accepting First-Time Buyer applications as of midnight Sunday, August 15, 2010. We have received more than enough to fully allocation the $100 million. We needed to accept additional First-Time Buyer applications since we have received so many duplicate, revised, and late applications. However, we will only issue approved certificates of allocation until the $100 million is exhausted. All First-Time Buyer applications received after August 15, 2010 will be denied. We will continue to accept New Home reservation requests and applications until further notice. (Updated 08/19/10)

The FTB finally started processing/issuing certificates for this credit on 8/17/2010 and have issued about 580 certs as of 8/24/2010.

HOWEVER, they are still accepting applications for the New Home Credit.  The FTB has actually issued about 270 New Home Certs as of 8/24/2010 totalling just under $1.9mil of the $100mil allocated.

Check out the FTB website for more info.

 

Posted by

 Kevin Kueneke, NMLS # 284800
San Diego County Mortgage Specialist
VA Mortgage Loan Specialist | FHA Mortgage Loan Specialist
Direct Lender | Mortgage Banker
Phone 760-500-1919 | Fax 619-419-2324

Visit My Website: kevinkloans.com 

Mann Mortgage LLC | NMLS #2550
11230 Sorrento Valley Road Suite 225| San Diego CA 92121

Greg Cook
Platinum Home Mortgage - Temecula, CA
Mortgage Consultant NMLS ID# 283159

Kevin, thanks for the update. The chance of the new tax credit using all the money is pretty small because the builder is responsible with providing paperwork and getting the certificate issued.

It's been out of the news for so long, I think most people have forgotten about it.

Aug 26, 2010 04:31 PM
Kevin Kueneke
Caliber Home Loans - Encinitas, CA
San Diego Mortgage Banker

Greg - you are absolutely correct.  It is doubtful that all of the money will actually be used.  Our builder division has said that many of their clients are not that interested in the credit since it does not work like the recently retired Federal $8k credit.

Aug 27, 2010 04:25 AM