The Scoop on the California First Time and Move-up Home Buyer Tax Credit: The $8,000 Extension and $6,500 Expansion
After weeks of reporters jumping the gun and claiming several different versions of the First Time Home Buyer extension/expansion program had already been approved, we now have a finalized bill signed into law by President Obama on November 6, 2009. Not only has the original $8,000 First Time Homebuyer Tax Credit been extended through to April 30, 2010, but existing California home owners who purchase again (move-up buyers), who qualify, will get their pockets stuffed with $6,500 cash when they purchase a home. Move-up buyers will not be required to sell their existing home to qualify for the credit.
To receive a Priority Buyer Status Approval from a Professional Loan Officer on a California No Down Payment Home Loan, FHA ½% Down Payment Home Loan, or a traditional FHA 3.5% Down Payment Mortgage, call me at (951) 332-7864 or complete a quick loan application on my website @ www.9651MortgageCoach.com.
What I’m most excited about is that California’s Military personnel who are or were deployed overseas for a minimum of 90 days in 2008 or 2009, will have until April 30, 2011 to claim the tax credit. This is a great additional benefit for our Military personnel who live in San Diego, Riverside, San Bernardino, Orange, and Los Angeles Counties.
Here are Highlights and/or Changes of the New Tax Credit Legislation:
• The home buyer tax credit expansion of $6,500 for existing California homeowners is available to those who have lived in their current residence for a consecutive five-year period
• The new bill also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000
• The maximum allowed home purchase price is $800,000
• A home buyer must have an executed sale agreement in hand by April 30 and close escrow by June 30, 2010
• Anyone who collects either tax credit and sells the home within three years of buying must return the refund
• Buyers can’t purchase the home from a parent, spouse, or child
• Buyers can’t purchase the home from an entity in which they’re a majority owner
• Buyers can’t acquire the home by gift or inheritance
• All parties to the purchase must meet eligibility requirements
• The credit is 10 percent of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns
And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer will receive an actual check from the IRS/U.S. Treasury for $8,000 if he eligible for all $8,000 available under the new law.
The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010. That’s only five months away.
To explore home loan options with a Licensed Professional Loan Officer (that’s me), call (951)332-7864, email brad(at)951MortgageCoach.com, or visit my website www.951mortgagecoach.com
If you enjoyed this post, please consider subscribing to our FHA Mortgage Loan Blog feed and get future articles delivered to your feed reader. You can also share this article using the 'Share This' tool below.
Brad Yzermans's RSS Feed
Comments
No comments yet.
Sorry, the comment form is closed at this time.