In late March, Governor Arnold Schwarzenegger signed legislation that will provide a state tax credit of up to $10,000 to Californians who are buying their first home or purchasing a brand new home.



New Home Tax Credit & First-Time Buyer Tax Credit:

A qualified principal residence must:

  • Be a single family residence, either detached or attached
  • Be eligible for the California property tax homeowner’s exemption, and
  • Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase of the home

In addition, for buyers to be eligible for the New Home Tax Credit, sellers must certify that the property has never been occupied. For purposes of the First-Time Buyer Credit, a first-time buyer is any individual who has not owned a home in the three years prior to purchase.

Eligibility:

Taxpayers will not be eligible for either tax credit if the taxpayer (1) was allowed a 2009 New Home Credit, (2) is under 18 years old, (3) is related to the seller (or if the taxpayer’s spouse is related), or (4) is a dependent.

Dates:

Close of escrow dates between May 1, 2010, and before January 1, 2011.  The credit is available on a first-come, first-serve basis and maybe limited in supply.

Please contact us for more information!

Contact Information:

Jeff Ciccarella & Eric Olsen – Loan Officers
General Mortgage Corporation
(858) 673-5794