The state of California has extended and improved the $10,000 tax credit for home buyers in California. The old tax credit used to only be for brand new built homes, now the tax credit includes ALL first time home buyers buying ANY type of primary residence, brand new or resale. This is wonderful news those who first time home buyers who intend to get VA loan to purchase their first primary residence home in California.
This state of California tax credit extension is set to start May 1st 2010 just as the $8,000 federal tax credit expires April 31st 2010. And the California tax credit will be available through August of 2011. The credit is 5% of the homes purchase price with a limit of $10,000. To get the full $10,000, a home buyer would have to purchase a home for at least $200,000.
The way these tax credits work is if you paid state of California income taxes, you can get a refund for those income taxes up to $10,000. So yes you will get a check for $10,000 probably a few weeks after you close on your home if you fit into this program and you paid $10,000 in state taxes! If it works like the federal tax credit does, you will be able to amend you 2009 returns and get the credit for 2009, or take the credit in 2010.
VA is the preferred financing of first time home buyers who are active military or veterans because of the incredible benefits such as zero down payment and low VA interest rates on 30 year fixed mortgages.
So if you have VA loan benefits and can get a VA loan, you may want to consider looking into it and get a bonus with the California tax credit. Some excellent advantages to VA loans:
- VA is the only major 100% financing, zero down home financing option available today
- VA loan credit scores do not have to be perfect to get the best VA interest rates
- Interest rates VA loans are STILL at historic lows
- VA loan limits in California cities like San Jose, San Francisco, Los Angeles, San Diego and more can get up very high to above $800,000 with zero down
- The guidelines to qualify VA loan are much more flexible than conventional and FHA loans
Give me a call (858-922-7899) or email (email@example.com) if you have any questions or want to apply for a VA loan.
Sr. Loan Officer (and VA specialist)