The bill Governor Schwarzenegger signed in mid-March is well underway. The state government has allotted $100 million for first time homebuyers of existing homes and $100 million for purchasers of a new home after May 1st and before December 31st, 2010. Each homebuyer is credited 5% of the purchase price or $10,000; whichever is higher. It must be claimed beginning with the year of purchase in equal amounts over three years.
What qualifies a first time homebuyer you ask? Any individual or their spouse who has had no ownership interest in a principal residence for three years before the date of purchase. And if that person is not a first time homebuyer they can still qualify with the purchase of a new home provided it becomes their principle residence.
Last year, the alloted money for tax credits ran out by June 2009. And just like last year, tax credits will be awarded on a first-come – first-served basis. Translation: if this year is anything like last year’s credit, money will be gone far before the December 31st deadline. Anyone who tries to qualify after the money runs out will be out of luck so act fast.
If you are on the fence about buying a home, the time to act is now! Contact a realtor and begin the process if you want to qualify for the tax credit before it’s too late. Call or write me at 916-838-5752 or firstname.lastname@example.org.