It is official. Mountain View first-time buyers this is an amazing opportunity!
Homebuyer tax credits will be continuing, adding a powerful incentive for those considering purchasing a new home. If you’re interested in purchasing a new home at Gables End, be in contract by April 30th to qualify for both California and Federal Housing Tax Credits!

The legislation, signed by the Governor Schwarzenegger today, allows first-time buyers in California  to begin claiming up to $10,000 tax credits starting May 1. Details regarding the legislation were posted in this recent Sacbee.com article (link)

In order to take advantage of this credit, Buyers needs to abide by certain criteria including:

• Must purchase the home between May 1, 2010 and December 31, 2010 and purchase date is the date escrow closes.
• This credit will be equal to 5% of the purchase price or $10,000, the lesser of the two.
• The tax credit must be taken in equal installments over three consecutive years.
• Purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit.

*California Association of Realtors Article about the Homebuyer Tax Credit (link)

The legislation allocates $200 million for more state tax credits – twice what was offered last year to 10,659 buyers of new, unoccupied homes. The state’s newest housing stimulus will grant $100 million in tax credits to first-time buyers of existing homes and $100 million to anyone who buys a new, unoccupied home. *

The state Franchise Tax Board is estimating that nearly 32,000 homeowners statewide might take advantage of  the tax breaks.

What about the Federal Housing Tax Credit?

Even better news for well-timed first-time purchasers! It may be possible to combine this credit with the Federal Tax credit (up to $8,000), enabling a home buyer to potentially capitalize on up to $18,000 in tax credits!  The catch is that you would need to be in contract by April 30, 2010, and close escrow between May 1, 2010 and June 30, 2010.

Federal Housing Tax Credit Summary (link)

*Restrictions apply, please contact a preferred lender for additional details.