Westlake Village Real Estate Blog

Posts Tagged ‘FTHB’

The 2010 California tax credit for first-time homebuyers (FTHB) that began with escrows closing on or after May 1, 2010, has already allocated $25,473,000 of the $100 million allotment. The FTHB tax credit is equal to the lesser of 5% of the purchase price or $10,000 and must be applied in equal amounts over 3 tax years (max $3,333 per year).

To qualify, (1) buyers cannot have owned a principal residence in the last 3 years; a married couple is disqualified if either has owned a principal residence within the 3-year period, (2) buyers must be over 18 and not related to the seller, (3) buyers must reside in the property for at least 2 years following the purchase. There are no income limits or purchase price limits. To apply for the tax credit a 2010 Application form 3549-A (see attachment to this email) must be completed by seller (or escrow) and buyer. Signed application, along with a copy of the final settlement statement (buyer’s HUD1), must be faxed to FTB within 14 days of closing (one minute late and you are disqualified).

For more info visit CA FTB website 2010 CA Tax Credit for New Home / First-Time Buyer. My thanks once again to Brownie Stanisch, of Prospect Mortgage, for providing this information.