The federal tax credit may have ended, but there are still two programs helping California residents who want to be home owners.
The first is the state’s $10,000 tax credit for both first time home owners and home owners looking to purchase new homes. The program actually began last year, and has been extended to run through August 1, 2011. The state will break down the applications based on date, which means the first set of claims will be processed through January 1, 2011, and the second set through August. It’s being done this way because it’s expected that funds for first time homeowners will probably hit the max quickly, so spreading it over two periods allows for more home owners to participate in the overall program. This means that first time home owners are encouraged to search for homes early to make sure funds will still be available.
The second is a program being run by Ryland Homes for southern California residents along with the Federal Housing Authority (FHA) to help residents that are looking to purchase new homes. This program is geared towards helping potential home owners cover the early costs of buying a home, such as down payments, as well as helping them overcome issues with potential credit problems because of tougher credit rules. Through FHA loans, potential home owners can purchase loans with a lower credit score, and the FHA will work with lenders to help secure loans for those purchases as well. Of course, FHA loans are available throughout the state.
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Mitch writes on real estate, finance, and many other things.