California First Time Homebuyers Tax Credit - Benefits of Homebuyer Tax Credit

The Government of California introduced theamount can be applied towards your mortgage
American Dream Down Payment Grant in 2009, inpayment. As a result, you receive a large tax
order for the US economy to get a boost. Adeduction and the preliminary mortgage payment
special Homebuyer Tax Credit was facilitated forinterest is also tax deductible. This makes sense if
first time home buyers. One of the mainyou want to keep your annual expenditure low.
advantages of this new grant is that there will noThe government of California is calling this money
longer be a need for loan sharks giving loans toas free money, because there are no monthly
people who need it most. Home buyers can nowpayments to be made so it is virtually free as
turn to credible banks and loan companies insteadthese funds remain idle as a second mortgage
of realtors.until the day they are paid back, unless you reside
This is a wonderful opportunity for first timein the same property for a period of thirty years.
home buyers to take up financial assistance ofLastly, owning a house is high on the list of
the banks, as once they are in possession of theirinvestments as property prices continue to rise.
property, whatever equity is in it can be used asNow is the best time to take advantage of low
a source of down payment for the nextinterest rates and the home buyer tax credit is
property.one of the best schemes that have been
It is important to mention the vast amount ofintroduced in California. Your dream of owning
tax savings through the mortgage interest. If youyour own home is now a closer dream than ever
are renting a house for a certain amount, thatbefore.