State of CA Extends & Enhances $10,000 Home Buyer Tax Credit – Great For Those Getting FHA Loans In California

State of CA Extends & Enhances $10,000 House Purchaser Tax Credit – Great For Those Getting FHA Loans In California is a publish from: FHA,VA and Standard House Loans in all 50 States

The state of California has extended and enhanced the $10,000 tax credit for home buyers in California.  The tax credit used to only be for brand new built houses, now the tax credit includes ALL first time home buyers purchasing ANY type of home, new or resale.   This is great information these who first time home buyers who intend to get FHA mortgage to buy their first primary residence home in California. 

This credit is set to go into effect May 1st 2010 just as the $eight,000 federal tax credit expires April 31st 2010.  And the California tax credit will be available via August of 2011.  The credit is five% of the houses buy price with a restrict of $10,000.  So to get the complete $10,000, you would have to buy a home for at least $200,000. 

The way tax credits work is if you compensated state taxes, you can get a refund for these taxes up to $10,000.  So yes you will get a verify for $10,000 if you match into this plan and you compensated $10,000 in state taxes.   If it works like the federal tax credit, you will be able to amend you 2009 returns and get the credit for 2009, or get the credit in 2010.

FHA is the favored financing of first time home buyers (the major recipients of the California home buyer tax credit) simply because of the minimum down payment of three.five% (which can be a present from a relative), versatile qualifying recommendations and still terrific interest charges.

And here are some additional highlights to keep in mind about FHA loans:

• To get a FHA mortgage credit score does not have to be ideal
• FHA mortgage interest  charges are at historic lows
• You can use present funds for FHA loan down payment
• Optimum FHA mortgage is $729,750, so you can get a FHA mortgage in costly components of California like Los Angeles, San Jose, San Francisco and San Diego
• Debt-to-earnings ratios on FHA loans are allowed up to 55% where conventional loans require 41% with less than 20% down 

Give me a call (858-922-7899) or e-mail (homeloan8@gmail.com) if you have any concerns at all about getting approved for a FHA Mortgage.

Warmest Regards,

Rob Chomentowski

Sr. Mortgage Officer (and FHA specialist)

858-922-7899