More Housing Help from the Government
In previous posts, fellow bloggers, Annie Chang and Michael Monozon, have talked about the many benefits of the new federal government stimulus package. Over the weekend, I learned about yet another program that will greatly help potential home buyers and will also help the many home builders who are sinking under the weight of their new homes not selling .
At our office meeting this morning, our in house lender, Guarantee Mortgage, filled us in on the details, as follows. It seems that the State of California has now instituted yet another tax credit. This one will apply only to people who purchase a brand new home, condo or townhome.
The basics of the State program are:
…Buyers of new construction will receive a tax credit of up to $10,000 or 5% of the purchase price, whichever is less.
…The credit is paid out to buyers over the course of a 3 year period.
…You must live in the property for 2 years or will have to repay the credit.
…Unlike the Federal program, there are no income limitations
…You do not have to be a first time homebuyer to qualify for this program.
…The program will run from today, March 1, 2009 through March 20, 2010 or whenever the $100 million that the Franchise Tax Board has allocated is gone. It is a first come, first serve program.
This is huge, because it means someone purchasing a newly built home (or one that no one has ever lived in,) can potentially get $18,000 in tax credits when you combine the State program with the Federal program.
I think that with all of these credits available for such a limited time, as well as the fact that the home prices are so incredibly low, that it is definitely time for people to start jumping off the fence and get cracking, before they miss the boat.
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4 Responses to “More Housing Help from the Government”
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Kathy,
The news over the weekend about the new home tax credit is great news and I have already spoken to a customer about it yesterday.
Keep the good news coming!
Brian
The possiblity of receiveing an $18,000.00 in assistance on the purchase of a new home is fantastic.
Larry
Great Post Kathy,
This is great news, as I am working with a few people who are considering purchasing a new home. I will be sure to let them know of this great opportunity. Thanks again,
Adam
Thank you to Michael, Larry and Adam for commenting on my post. I really feel for all of these home builders who have given there all to build new complexes only to have the market fall apart on them.
This is an amazing opportunity for buyers to own a brand new home and get a tax credit in the process.