4/08/2010

California $10,000 Buyer Tax Credit Is Coming Very Soon!

REALTOR Open House Weekend April 10-11
Some of you may not yet know about the $10,000 California tax credit which will go into effect on May 1, 2010, until the end of the year, or until the funds run out. $200,000 million total is allocated--half to new construction purchases and half to an existing home purchased by a first time homebuyer. Purchasers must reside in the home for two years, and there are no income limitations to be met, and no repayment as long as the purchaser stays in the home for two years. The status of funds available (there's no guarantee how long this money will last) will be published at http://www.ftb.ca.gov/.  Note: May 6 update article.

The credit is either $10,000 or 5 percent of the purchase price, whichever is less. So if a $500,000 home is purchased, the buyer would receive the $10,000 credit, which would be payable in equal amounts over 3 years.

The homeowner submits a certificate to the FTB after entering into a purchase contract.

Buyers who are not taking advantage of the IRS tax credit, ending April 30th, have this second opportunity given by the State of California.

In case you need more of a picture of how things are working in the buyer's favor, please see the interest rate histories at http://www.housingmatrix.com/index.php/interest-rate-histories.html where the viewer may look at the 30-year history, 10 years, etc.

Current interest rates (which are moving up right now) are still close to the range of where rates were in the late 1960's and early 1970's, unlike the high peak during the early 1980's when rates were in the 18-20% range. However, a snapshot of last week shows rates moving above 5% when they have been below 5% much of the last year for 30-year fixed mortgages. So for a $400,000 loan amount, the monthly principal and interest payment at 5% would increase by $61.00 a month if the rate goes up to 5.25%, or $732.00 annually.

For a customized list of homes, please contact me, very easy to send via e-mail. For February's trends in Long Beach, see my earlier post on trends in condos and houses, and the inventory.

For a similar report on your immediate neighborhood or zip code, contact me via phone or e-mail. I can easily send you one by e-mail.
For a current property search, go to http://www.juliahuntsman.com/ for condos, houses, income property and other MLS listings. And, join my fan page (see column to the right) to keep up with information and important tips!

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