This is not a good news for first time homebuyers 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. Read more..
Great news for homeowners and buyers in Contra Costa, San Mateo and San Francisco counties. Stated Income loans are now available for borrowers in these counties. This type of loan could specially be very useful for Self-Employed borrowers who find it difficult to document their “real” income via Tax Returns. Also, commissioned employees who have wide swings in their income could benefit from a program like this. Below are the highlights of the program:
Yields on long-term Treasury bonds have been rising despite the Fed’s efforts to push them down by purchasing Treasury securities. The Fed wants Treasury yields lower because they are a benchmark for many other private-sector interest rates — including rates on mortgages. Concerns about large federal deficits, are one cause of the unwanted rise in yields. The wider the deficits, the more the Treasury borrows and the higher rates go. Wider deficits also stir inflation fears, which also push Treasury yields up. 
