Down Payment Assistance

Sacramento Homebuyers, get happy! The Federal government has pushed the $8000 tax credit for qualified first-time home buyers who are buying a principal residence. This credit now works for purchases happening on or after Jan 1st, 2009 to on or before April 30th, 2010. The exception is where a sales agreement is inked by April 30th, 2010, if the purchase is closed by June 30, 2010 the tax credit will still apply.

For purchases happening after November 6, 2009, there is now income limits of $125,000 for single tax filers and $225,000 for couples filing joint returns. Limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009: $75,000 for single and $150,000 for married. These limits do not apply to just Sacramento residents, they apply nationally.

Who is eligible to claim the $8,000 tax credit?

Sacramento First-time buyers can purchase any kind of home and receive the tax credit. To qualify this purchase must occur in the date ranges described above. 
Sadly, persons who are claimed as dependents by another taxpayer or who are underage do not qualify for this tax credit.

What is the definition of a first-time home buyer?
The law states “first-time home buyer” as a someone who has not owned a principal residence for 3 years prior to the purchase. For married couples, the restriction applies to both home buyer and his/her spouse. Buying a home in Sacramento CA? Remember VA & FHA loans require your spouse to apply for the loan along with you even if they won’t be on the mortgage.

How’s the dollar amount of the tax credit worked out?

The credit maximum is 10% of home purchase price up to a max of $8,000.

More info