California Homebuyer Tax Credit Extended

Today Governor Schwarzenegger officially signed an extension for the home buyer tax credit through December 31, 2010. The bill provides $200 million for tax credits, allocating $100 million for first time home buyers (defined as those who have not owned a home in the last 3 years) and $100 million for purchasers of new or previously unoccupied homes.

The requirements for the credit are:

1. The residence purchased must be the buyer’s primary residence;

2. The purchaser(s) must live in the home for at least two years after the sale, or will be required to forfeit the credit to the state;

3. Buyers must be at least 18 years old and unrelated to the seller of the property.

The credit will be assessed at 5 % of the purchase price or $10,000, whichever is less, and will be paid over a three year period. This is great news for home buyers and for the housing market, especially with the spring inventory just starting to arrive on the market. Happy hunting!