In order to obtain both credits, first time purchaser needs to have a valid, signed purchase contract for what will be their primary residence by April 30, and escrow must be closed sometime from May 1st through June 30th of this year.
Purchasers who are not buying their very first home can make use of the same time frame in order to get as much as $16,500 in credits if they buy a home that has never been lived in (California requirement) and they have lived in their present home for the long term (Federal requirement). Also, their new home must serve as their primary residence for at least three years; otherwise they would have to replay the credit amount.
Up to ten thousand dollars of the above mentioned tax credits would come from the state of California for first time purchasers or those who purchase a new home which has never been lived in.
Up to eight thousand dollars would come from the Federal tax incentive. The first time purchaser may be eligible for the full amount, while the long term owner/resident of a home may get up to $6,500.
According to the California law, usually the purchasers of a new, never lived in home may reserve the tax credits prior to the close of escrow. However, those who want to get both the Federal and the California credits will be unable to meet the timing specifications in order to reserve their credits.
Please note that there are other specifications that are applicable to both of the tax credits.
