Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

This is not a good news for first time home buyers in San Francisco Bay Area and rest of the state. CA state tax credit of $10,000 for First Time Home Buyers has reached the $100 million limit.

Background – In April this year California government made the $10,000 tax credit (or 5% of the purchase price whichever is less) available to qualified buyers who purchased a qualified Principal Residence that has never been occupied,after March 1, 2009 and before March 1, 2010. The buyer must reside in the new home for a minimum of 2 years immediately following the purchase date. The government had allocated a budget of $100 million for this credit.

Current Status – State of CA Franchise Tax board posted on its website on 6/26/09 that it has reached $100 million in new home credit applications. However, it says many of it could be duplicates, revised or invalid. And hence they plan to receive up to a total of 12000 applications. At current rate they would reach this limit in the week of July 6, 2009. That will ensure they have enough valid applications to allocate the full $100 million. These additional applications will be subject to the availability of remaining credits. They expect to complete processing of all certificates in August.

How to apply –

  • Within one week (seven calendar days) after the close of escrow:
    • The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
    • The buyer will complete Parts II & III of Form 3528-A.
    • The escrow person, on behalf of the seller and buyer, will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
  • Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated. The date and time applications are received may not be reviewed in any administrative or judicial proceeding.
  • Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
  • Do not fax the application to FTB before escrow closes.
  • Do not fax the application to FTB more than once.
  • Escrow companies should only send one application per fax transmission.
  • The buyer keeps a copy of the completed Form 3528-A for their records.
  • The Form 3528-A is now available online as a fillable form. Simply fill in all required information, print the form, and sign. If you fill out the form by hand, please print numbers as clearly and neatly as possible using CAPITAL LETTERS and staying between the lines.

Related Posts

  • 96
    In the final state of the state address of his gubernatorial career, Gov. Arnold Schwarzenegger proposed a second round of $10,000 first time home buyer tax credit. The previous tax credit depleted eight months before the deadline after benefiting almost 10,700 California home buyers. The Franchise Tax Board stopped taking…
    Tags: tax, credit, $, will, california, time, buyers, buyer, seminar, compare
  • 95
    The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now." This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to…
    Tags: will, rates, purchase, $, credit, mortgage, tax, time, buyer, seminar
  • 94
    There has been a lot of buzz in the media over last couple of days about extension of First Time Buyer Credit. National Association of Mortgage Brokers (NAMB), National Association of Home Builders (NAHB) and National Association of Realtors (NAR), have been working with the Government for sometime now to…
    Tags: credit, $, time, buyer, seminar, compare, california, mortgage, rates
  • 94
    First Time Home Buyer Tax Credit for San Jose and rest of the Bay Area Who is Eligible? The $8,000 tax credit is available for first-time home buyers only. The law defines first-time home buyer as a buyer who has not owned a principal residence during the three-year period prior…
    Tags: $, credit, tax, buyer, time, seminar, compare, california, mortgage, rates
  • 90
    The $8000 first time home buyer credit has been extended and expanded for San Jose and rest of the Bay Area buyers. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire…
    Tags: credit, tax, $, mortgage, time, buyer, seminar, compare, california, rates