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California Homebuyer Tax Credit

By
Mortgage and Lending with Hemet Mortgage

Now the Federal tax credit is behind us it is time to dive into the CA homebuyer credit. This credit is for the purchase of new homes or for First time home buyers purchasing an existing home.

-Valid for closings after May 1, 2010 until the end of the year. If you have a contract signed by December 21, 2010 you will have until August 1, 2011 to close the transaction.

The credit is the lesser of 5% of the purchase price or $10,000. The credit will be spread out over 3 years beginning in the year the home is purchased. The tax credit will be allocated on a first come fist served basis. The last CA tax credit ran out of funding before the deadline for purchasing.

For both credits you must reaming in the home as your primary residence for a minimum of 2 years immediately following the purchase. you must be over 18 year of age, not related to the seller and not claimed as a dependant by any other tax payer for the year of the purchase.

For the first time home buyer credit, you must not have ownership interest in the past 3 years.

The state allocated $200 million for the tax credit. The tax credit will be allocated on a first come fist served basis. The last CA tax credit ran out of funding before the deadline for purchasing.

For more detail please click on the link: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml