HOME BUYER TAX CREDIT-State of California AB 183 will provide $200 million for home buyer tax credit-allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new homes. Eligible purchases between May 1, 2010 and December 31, 2010 will be allowed a tax credit. Tax credit is equal to the lesser of 5% of the purchase price or $10,000 in equal installments over three consecutive years. Purchasers will be required to live in the home for at least two years or forfeit (repay the state) the credit taken. California Association of Realtors March 25, 2010. GOOD FAITH ESTIMATE FORM EFFECTIVE JAN. 1-RESPA changes that went into effect Jan. 1, now mandate consumers receive a standard, three-page Good Faith Estimate to help consumers shop around for the best loan and compare lenders' offerings. Lenders are prohibited from increasing the origination fee from the estimate. Estimates for other charges; homeowner's insurance and other services provided by third parties selected by the borrower, aren't subject to such limits. North Bay Association of Realtors newsletter January 15, 2010.
2009 Napa Valley Sales-Real estate sales for St. Helena totaled 55 residential units and 6 land sales, Calistoga totaled 34 residential units and 5 land sales, Angwin/Deer Park totaled 6 residential units and 3 land sales, Yountville totaled 20 residential units and 0 land sales. BAREIS multiple listing service, January 12, 2010.
30-YEAR HOME LOANS FALL BELOW 5%-The average rate on a 30-year fixed rate mortgage was 4.94 % down from 5.04% the previous week. The average rate on a 15 year fixed rate mortgage fell to 4.36%. Rates on five year adjustable rate mortgages averaged 4.42%. The rates do not include points charged by lenders. SF Chronicle-Real Estate, October 4, 2009.
FEDERAL TAX CREDIT FOR FIRST-TIME HOME BUYERS-The federal tax credit for first-time home buyers is set to expire December 1, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according the the National Association of Realtors. In California, nearly 40 percent of first-time home buyers reported they would not have purchased a home without the tax credit, according to a California Association of Realtors (CAR) survey.
C.A.R. supports an extension of the federal tax credit throught 2010 and to include all home buyers-not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again. As the expiration date for this successful program looms, it is imperative that you take action by contacting your congressperson and urging them to extend this vital home-buying incentive to all home buyers. 9-16-09 California Association of Realtors
CALIFORNIA PROPERTY TAX RELIEF-If either spouse is over age 55 years of age PROP 60 allows the replacement of a primary residence with another home of equal or lesser value within the same county and the transfer of the Prop 13 assessed valuation from the old home to the new property. This is allowed once in your lifetime, and a spouse who has done it before 'taints' both spouses. This should not be confused with the Federal IRS tax relief for sale of your personal residence. See Below.
FEDERAL TAX RELIEF FROM SALE OF YOUR PRINCIPAL RESIDENCE-The taxpayer shall be allowed to exclude up to $250,000 of gain ($500,000 for married couples filing a joint return) realized on the sale or exchange of a principal residence. To be eligible, the residence must have been owned and used as the taxpayer's principal residence for a combined period of at least 2 years out of the 5 years prior to the sale or exchange. The prior law permitted a "Once in a Lifetime" exclusion of $125,000 of gain. Unlike the prior law, this exclusion will apply each time the taxpayer sells or exchanges a principal residence, although the exclusion may not be claimed more frequently than every two years. Also, unlike the prior law, the taxpayer is not required to acquire a replacement principal residence to claim the exclusion.