In order to stimulate purchases of newly constructed homes as well as encouraging home ownership; the State of California has issued a (up to) $10,000 tax credit for homebuyers of new contruction properties.
Here are the details of the plan:
1) This credit only applies to new homes that will be used as a primary residence and is limited to the first 10,000 new home purchases.
2) The credit is for $10,000 or 5% of the home's price, whichever is less.
3) There is no down payment requirement to receive the $10,000 tax credit.
4) There are no maximum income limitations so any buyer purchasing a new home can qualify.
5) The $10,000 tax credit is just that, a credit, not a loan, so if the home remains your primary residence for two years, you do not have to pay any portion of the tax credit back. If you sell the home in less than two years, then it has to be paid back at time of sale.
6) The new home cannot be located outside of the United States and it cannot be inherited property or a gift.
This sounds too good to be true! How does the state keep track of the first 10K to buy?
Interesting poiint, Joan. I guess that's why they get paid big bucks for their jobs :-)
Sylvia--Lots of amazing programs out there for buyers today. Now really is a good time to consider buying a home with all of the incentives out there!