If you are thinking of purchasing a home, there isn't a better time to purchase a home than right now! Home prices are finally affordable for many entry level first time home buyers, and interest rates are at historical lows. AND buying a home this year will allow you a tax credit as well! Yes, you can have an agent represent you whether you choose to purchase a resale home or a brand new home. Here's the exciting news: California State Tax Credit for New Construction Homes
5% of purchase price, maximum $10,000
Primary residence, does not need to be a first time home buyer
Home must be new construction, never occupied
Tax credit is given over next 3 years, 2009, 2010, 2011 in equal installments $3,333/year)
If buyer does not live in house at least 3 years, credit must be paid back to state.
Home must be purchased between 3/1/2009 and 3/1/2010
Total funding $100,000,000. When its, gone, it's gone, so late comers may not get credit.
Federal Tax Credit
Up to 10% of purchase price, max $8,000
Primary residence
Must be a first time buyer (one who has not owned a home in the last 3 years as evidenced by tax returns and credit report)
Valid on any home, new or resale.
Does NOT have to be repaid
Valid for homes purchased between 1/1/2009 through 11/30/2009
One-time tax credit on 2009 tax return (filed in 2010)
Buyer must live in home at least 2 years
It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.
The credits are independent of each other, with different requirements. The sweet spot is that a borrower buying a $200,000 or more home, new construction, first time buyer prior to 11/30/09 could get both tax credits for up to a total of $18,000.
http://www.youtube.com/watch?v=Rr4XD7GzRPM&feature=email Steve and Nancy Riggs look forward to meeting with you! They would love to help you find the home of your dreams! |