There is financial assistance available to first time home buyers. And if you have previously owned a home but have not owned a home for 3 years you may be eligible for the first time home buyer assistance.
From the C.A.R., the California Association of Realtors:
To help stimulate home sales, both the federal and state governments are offering tax credits for Californians purchasing their piece of the American dream. Federal law offers up to $8,000 for first-time homebuyers and $6,500 for long-time residents. California law offers up to $10,000 for first-time homebuyers or buyers of properties that have never been occupied.
HOMEBUYER TAX CREDIT |
FEDERAL |
CALIFORNIA |
Amount of Tax Credit |
10% of purchase price not to exceed $8,000 for First-Time Homebuyers or $6,500 for Long-Term Residents. |
5% of purchase price, not to exceed $10,000 for first-time homebuyers or buyers of properties that have never been occupied. (See also Maximum Credit for All Taxpayers.) |
Date of Purchase |
By June 30, 2010, but taxpayer must enter into a written binding contract by April 30, 2010. |
From May 1, 2010 to July 31, 2011, but an enforceable contract must be executed by December 31, 2010. |
Here’s a handy summary of the two tax credit laws:
See the IRS guideline bulletin.
Information is also available from the Internal Revenue Service (IRS), Department of the Treasury.
IRS Form 5405 to claim the first time home buyer credit.