California New Homebuyer Tax Credit - What You Should Know About the Homebuyer Tax Credit

Are you planning to purchase a new home inschemes. It is available for everyone and not just for
California? If so, you could possibly qualify for thethe first time buyers. The good news is that this
homebuyer tax credit. These are given to peoplebenefit can be combined with the federal program,
who are buying new homes as their main residenceand in return saving you up to 20,000 dollars, thus
not for rental purposes or vacation homes. To get aassisting you with down payment.
clearer picture of the criteria for this program, here isIt is important to know that individuals who are not
a brief explanation.purchasing their home in California will not qualify for
This program is only available until spring 2010 sothe 10,000 dollar credit. They would only be eligible
homebuyers need to buy their home within thisfor 8,000 dollars. The governor of California, Arnold
period in order to receive the benefits. But you canSchwarzenegger decided to introduce the $10,000
submit your application by end of this year if youamount to Californians.
have already purchased your main residence.Here is a little breakdown on the amount of credit
Those who have purchased a new home from lastthat will be given to the borrowers. If you buy a
spring to March 2010 will automatically qualify for thishome in California that costs $200,000, your eligibility
scheme; however homebuyers should be madefor the credit will be $10,000. If you purchase a
aware that they must intend to reside at their newhome for $500,000, your maximum credit still is
home for at least two years to avoid paying this$10,000. This is the highest amount that an individual
credit back in part or full payment.can be entitled to.
This tax credit is not like any other federal tax