Mortgage Updates

Thousands of new-home sales resulted last spring and summer due to the CA $10,000 new home tax credit originally promoted by the California building industry. 

A 35-1 vote in the Senate reauthorizes the credits, estimated at $30 million, that were not awarded in the first go round of the program.  This paves the way for approximately 4,300 home buyers to receive a $3,333 California State tax credit over the next three years.  The Senate Bill now heads to the Assembly, which has already shown that it is in favor of supporting the struggling housing industry by allocating tax credits to buyers. 

An earlier version of the bill was approved by wide margins in this Assembly.  The final step, of course, is governor Schwarzenegger's approval.  But, there seems little doubt that this won't happen.  The governor has already stated that this will stimulate the CA economy.