Danielle Lazier

Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

For a very limited time, certain San Francisco first time home buyers will benefit from up to $18,000 in tax credits. Not a first time buyer? You may still be eligible for up to $16,500 in combined tax credits.

The deal is that you need to be in escrow by the end of April 2010 and close escrow by the end of June 2010. Three weeks doesn’t sound like a lot of time, does it? Yes and no. For those of you who are serious about buying a home, three weeks is enough time to catch up on the existing homes for sale and zero in on the right home for you. (It helps to work with energetic and responsive San Francisco real estate agents who will help you narrow down your search to the best homes meeting your criteria and then help you see them quickly. Yes, like us. Duh.)

Of course, the timing needs to be right for you and your situation. A tax credit alone does not mean you should buy a home! If it makes more sense to wait, then wait. But if you’ve been procrastinating and have been afraid to pull the trigger and make an offer on a house in San Francisco, maybe this extra dough in your pocket is just the incentive you need.

Zephyr Real Estate and our amazing new SF real estate website has been promoting this golden ticket opportunity but we’re not along. Check out the SFGate article on San Francisco Bay Area home buying, “Good timing could reap double tax credits.”

“Getting both: Both credits require you to buy the home as your primary residence. Both define a first-time buyer as someone who has not owned a home in the three years prior to purchase. In short, to get both credits you must be in contract on or before April 30 and close between May 1 and June 30 – and meet all other requirements.” Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/01/BU9G1CNTVN.DTL#ixzz0kiWPYQwZ

Just want the facts?

Courtesy of May Montana* and all of the great mortgage brokers at Guarantee Mortgage, here is a Matrix explaining the 2010 Home Buyer Tax Credits:

2010 Home Buyer Tax Credit Matrix – PDF File

More info:

1 Bedroom 1 Bath Condo with Parking For Sale Mission Dolores

• Dolores Plaza 1 Bedroom Mission Dolores Condo for Sale -
  • FHA-Approved for 3.5% Down Payment AND
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• Federal and California Home Buyer Tax Credit and other reasons it may be the right time to buy a home in SF.

* May Montana is an excellent mortgage adviser. Check out our other recommended lenders and San Francisco mortgage brokers. Why do we recommend them? Because we know they are experienced, trustworthy, reliable, competitive with rates and fees… We have NO financial relationship with mortgage brokers. That would be illegal, unethical and totally not worth it. We just like working with these folks and know you will too!

Tags: CA Tax credit, Federal Home Buyer Tax Credit, home buyer tax credit

Federal Home Buyer Tax Credit Extended and Improved! Will More SF Buyers Qualify?

The Federal Home Buyer Tax Credit has been extended and improved. This may mean that more San Francisco home buyers will qualify which is good news for both buyers and sellers.

Many clients have asked me what sort of impact the tax credit has had on our local SF real estate market. Given the income caps, I would have to say not too much of one. But now, this should be improved a little… I stress, a little, because the limitations continue to make the tax credit irrelevant for a large part of our market. For example, the limitation on the cost of a home is $800,000.

What are the major changes?

1. The timeline has been extended. You must go into contract on your home purchase before April 30, 2010 and close escrow by July 1, 2010.
2. Current homeowners now qualify. This is to help assist the “move-up” market. My readers know how great a time I believe it is to “trade-up” from your starter home into something more long-term (assuming you have relative job security and equity). (“Move-up” home buyers must have used their property as their “principal residence” for 5 out of the past 8 years.)
3. Income brackets to qualify have increased. Now, up to $125,000 for a single person and $225,000 for a married couple.
4. Purchase price limited to $800,000 or less.

For a complete 2009-NAR-Issue-Brief-Homebuyer-Tax-Credit-Changes-1104-1107.

Tags: Federal Home Buyer Tax Credit, home buyer tax credit, tax credit