California first-time home-buyer credit running low; New construction buyers have time

The CA Franchise Tax Board, who is responsible for administering the tax credits for first-time home-buyers and new construction buyers, estimates they have received approximately 17,860 applications as of yesterday, 6/22/2010. Those 17,860 applications account for 91% of the available credit for first-time home-buyers. The tax board is currently receiving around 2,500 applications per week for the first-time home-buyer credit and if that trend holds the credit is estimated to be completely allocated around the end of the month.

However, don’t lose hope and don’t panic! The tax board also admits that the estimated number is over-stated:

“The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. In addition, some purchases may be included twice if we have received both a reservation request and an application for the purchase.”

In reality, the credit will likely still be available for first-time home-buyers who close and apply in the first week or two of July, and maybe a little bit longer. The tax board is going to accept 28,000 applications for the credit, and at the current submission rate the tax board will stop accepting applications around the end of July. However there is no guarantee all applicants will receive the credit. The tax board will review the applications and allocate the credit to qualified applicants on a first-come, first-served basis. So if you’re still looking for the right place you may not have enough time to find a home, close your transaction, and still benefit from the California state first-time home-buyer tax credit (unless you end up buying new construction – see below). It’s definitely down to the wire, but you should still apply because you never know (the application form is only 2 pages).

If you’re already in escrow on a property, don’t panic. Proceed to your closing date in an orderly, single-file line. Here are a few tips:

  • Fill out the application ahead of time, and fax it in to the number on the page linked above as soon as you close your escrow, but not before. Submissions prior to closing will not be processed.
  • Make sure you are using the 2010 form. You can find the application on the Tax Board’s website under “Forms and Publications.”
  • The tax board will use the time stamp from the faxed application to determine priority order and it literally may come down to missing it by minutes, so be prompt once you’ve closed. At 2,500 applications / week, the tax board is receiving an application every minute if you assume most everything comes in during business hours.

One other thing to note, if you’re trying to get the federal tax credit as well, the closing deadline is still June 30th, so make sure you, your lender, and your agent are in constant communication to carry the ball over the goal line.

If you’re hunting for new construction, whether you’re a first-timer or not, the new construction credit is only 41% allocated and will likely last until the end of September at the current application rate. Watch the tax board website for updates. They will post allocation updates every Friday morning so you can see how things are progressing and will post another update when they are no longer taking applications for the two credits.

Happy hunting.

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  • LuevanosGB

    question if i closed escrow a month ago do you think i still have a chance because I read the paperwork had to be submitted two weeks after the close of escrow and times has lapse for me.

    • Adam Wiener

      Hi LuevanosGB, the tax board website does specify that you need to submit your application within 2 weeks of closing. So it is possible that the limit has expired. Although you should still attempt to submit your application as it’s always possible they may revise that rule retro-actively. I don’t have any reason to think they will, but you never know. It’s free to apply and the form is only 2 pages long.

      To everyone who has closed recently or closing is coming up, the tax board recommendation is to actually have the escrow company hosting your closing send the fax on your behalf and provide you a copy of the application for your records. That way you can be sure escrow is truly closed and not too much time lapses. For more information check the “How to Apply” section at http://www.ftb.ca.gov/individuals/new_home_credit.shtml

    • Kartikag

      I am in the same boat.. I didn't know that we have only 2 weeks to submit paperwork, should have given atleast a month.

      • Pis

        Lazy. Two weeks is plenty. The next clown with want 6 weeks, then next 6 years,

    • Pis

      Nope. Policy is within 2 weeks.

    • Jeffrey Martino Young

      Just as Congress approved a three month extension for first time home buyers who were applying for the federal tax credit.California the following day notified evryone that they were running out of funds.In your case its no longer the question if you got your signed documents together before the September 30th deadline its now the question if the funds still exist.Contact me and I will look into the matter for you as a courtesy….Jeffrey Martino Young at Essex Mortgage Bank in Santa Rosa,Ca.95404 e-mail – phone – Cafhaloan@gmail.com phone # 984-0496 or vist us online at http://www.fhasubmissions.com

  • http://www.fhasubmissions.com Jeffrey Martino Young

    We have many programs still available for the California First Time HomeBuyer both from the city as well as the state of California individual programs.I have a specific map of the cities that are participating in the various California First Time HomeBuyer programs just give me a call or e-mail as I woiuld be happy to assist you at no charge and no obligation I just want to help the fellow American be a California First Time HomeBuyer ……Jeffrey Martino Young at Essex Mortgage Bank in Santa Rosa,Ca. 95404 you can e-mail me at Cafhaloan@gmail.com or call me free of charges at 1-877-870-2676 or visit my California First Time HomeBuyer website at http://www.fhasubmissions.com

  • JEFFREY MARTINO YOUNG

    The Franchise Tax Board (FTB) announced today that it will stop accepting applications for the First-Time Buyer Credit at midnight Sunday, August 15, 2010.Jeffrey Martino Young Essex Mortgage Bank in Santa Rosa,Ca.95404 Toll Free 1-877-870-2676 webpage – http://www.fhasubmissions.com

  • Megous0001

    If you haven't saved a deposit or you're concerned about whether you can afford to meet mortgage repayments on your income, there are still options available to you, including group mortgages, guarantor mortgages or government assistance schemes for first-time buyers and key workers.
    ===================
    Mortgage Calculator Uk

  • bordas

    Buying a house for this first time, is, for most people, both extremely exciting and somewhat scary.This may be your biggest financial commitment to date, and you may wind up buying the house that you spend the rest of your life in.Securing the best financing can mean thousands of dollars saved, whereas a bad choice can cost a great deal, and in the worst cases can lead to loss of that property.Ok, we are not making this any less scary are we?!
    The good news is that with proper research, you can go into a new mortgage arrangement with your eyes open.
    Talk to a variety of experts in the real estate, mortgage and legal professions, and read up as much as you can online.
    [url=http://www.remortgagerates.ws]Mortgages For First Time Buyers[/url]

  • bordas

    Redfin.com
    Los Angeles Sweet Digs
    « Redfin Launches Direct Service in Oak Park, Agoura Hills, and Westlake Village
    Case-Shiller: Low Tier Home Values Boosted by Expiring Tax Credit »
    June 25, 2010
    California first-time home-buyer credit running low; New construction buyers have time

    The CA Franchise Tax Board, who is responsible for administering the tax credits for first-time home-buyers and new construction buyers, estimates they have received approximately 17,860 applications as of yesterday, 6/22/2010. Those 17,860 applications account for 91% of the available credit for first-time home-buyers. The tax board is currently receiving around 2,500 applications per week for the first-time home-buyer credit and if that trend holds the credit is estimated to be completely allocated around the end of the month.

    However, don’t lose hope and don’t panic! The tax board also admits that the estimated number is over-stated:

    “The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. In addition, some purchases may be included twice if we have received both a reservation request and an application for the purchase.”

    In reality, the credit will likely still be available for first-time home-buyers who close and apply in the first week or two of July, and maybe a little bit longer. The tax board is going to accept 28,000 applications for the credit, and at the current submission rate the tax board will stop accepting applications around the end of July. However there is no guarantee all applicants will receive the credit. The tax board will review the applications and allocate the credit to qualified applicants on a first-come, first-served basis. So if you’re still looking for the right place you may not have enough time to find a home, close your transaction, and still benefit from the California state first-time home-buyer tax credit (unless you end up buying new construction – see below). It’s definitely down to the wire, but you should still apply because you never know (the application form is only 2 pages).

    If you’re already in escrow on a property, don’t panic. Proceed to your closing date in an orderly, single-file line. Here are a few tips:

    * Fill out the application ahead of time, and fax it in to the number on the page linked above as soon as you close your escrow, but not before. Submissions prior to closing will not be processed.
    * Make sure you are using the 2010 form. You can find the application on the Tax Board’s website under “Forms and Publications.”
    * The tax board will use the time stamp from the faxed application to determine priority order and it literally may come down to missing it by minutes, so be prompt once you’ve closed. At 2,500 applications / week, the tax board is receiving an application every minute if you assume most everything comes in during business hours.

    One other thing to note, if you’re trying to get the federal tax credit as well, the closing deadline is still June 30th, so make sure you, your lender, and your agent are in constant communication to carry the ball over the goal line.

    If you’re hunting for new construction, whether you’re a first-timer or not, the new construction credit is only 41% allocated and will likely last until the end of September at the current application rate. Watch the tax board website for updates. They will post allocation updates every Friday morning so you can see how things are progressing and will post another update when they are no longer taking applications for the two credits.

    Happy hunting.

    Posted by Adam Wiener on June 25, 2010 3:48 PM | del.icio.us | Digg
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    LuevanosGB [Moderator] 5 months ago
    question if i closed escrow a month ago do you think i still have a chance because I read the paperwork had to be submitted two weeks after the close of escrow and times has lapse for me.
    Flag
    1 person liked this. Like Reply Reply
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    Kartikag [Moderator] 5 months ago in reply to LuevanosGB
    I am in the same boat.. I didn't know that we have only 2 weeks to submit paperwork, should have given atleast a month.
    Flag
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    Pis [Moderator] 4 months ago in reply to Kartikag
    Lazy. Two weeks is plenty. The next clown with want 6 weeks, then next 6 years,
    Flag
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    *

    Pis [Moderator] 4 months ago in reply to LuevanosGB
    Nope. Policy is within 2 weeks.
    Flag
    Like Reply Reply
    *

    Jeffrey Martino Young [Moderator] 4 months ago in reply to LuevanosGB
    Just as Congress approved a three month extension for first time home buyers who were applying for the federal tax credit.California the following day notified evryone that they were running out of funds.In your case its no longer the question if you got your signed documents together before the September 30th deadline its now the question if the funds still exist.Contact me and I will look into the matter for you as a courtesy….Jeffrey Martino Young at Essex Mortgage Bank in Santa Rosa,Ca.95404 e-mail – phone – Cafhaloan@gmail.com phone # 984-0496 or vist us online at http://www.fhasubmissions.com
    Flag
    Like Reply Reply
    *

    Jeffrey Martino Young [Moderator] 4 months ago
    We have many programs still available for the California First Time HomeBuyer both from the city as well as the state of California individual programs.I have a specific map of the cities that are participating in the various California First Time HomeBuyer programs just give me a call or e-mail as I woiuld be happy to assist you at no charge and no obligation I just want to help the fellow American be a California First Time HomeBuyer ……Jeffrey Martino Young at Essex Mortgage Bank in Santa Rosa,Ca. 95404 you can e-mail me at Cafhaloan@gmail.com or call me free of charges at 1-877-870-2676 or visit my California First Time HomeBuyer website at http://www.fhasubmissions.com
    Flag
    1 person liked this. Like Reply Reply
    *

    Jeffrey Martino Young [Moderator] 4 months ago
    The Franchise Tax Board (FTB) announced today that it will stop accepting applications for the First-Time Buyer Credit at midnight Sunday, August 15, 2010.Jeffrey Martino Young Essex Mortgage Bank in Santa Rosa,Ca.95404 Toll Free 1-877-870-2676 webpage – http://www.fhasubmissions.com
    Flag
    1 person liked this. Like Reply Reply
    *

    Megous0001 [Moderator] 2 weeks ago
    If you haven't saved a deposit or you're concerned about whether you can afford to meet mortgage repayments on your income, there are still options available to you, including group mortgages, guarantor mortgages or government assistance schemes for first-time buyers and key workers.
    ===================
    Mortgage Calculator Uk
    Flag
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    bordas [Moderator] 0 minutes ago
    Buying a house for this first time, is, for
    most people, both extremely exciting and somewhat scary.This may be your biggest financial commitment to date, and you may wind up buying the house that you spend the rest of your life in.Securing the best financing can mean thousands of dollars saved, whereas a bad choice can cost a great deal, and in the worst cases can lead to loss of that property.Ok, we are not making this any less scary are we?!The good news is that with proper research, you can go into a new mortgage arrangement with your eyes open.
    Talk to a variety of experts in the real estate, mortgage and legal professions, and read up as much as you can online.

    <ahref=”http: rel=”dofollow” http://www.remortgagerates.ws“=”">Mortgages For First Time Buyers
    </ahref=”http:>

  • http://housesearch123.com Real estate orange county

    Hello I would like t o say that
    There is no Reservations for the New Home Credit can only be done if the contract is entered into on or after May 1, 2010. However, if the agreement is cancelled and a new agreement is entered into on or after May 1, 2010, you may request a Reservation.