Are There Any First-Time Buyer Credits? What Walnut Creek Homebuyers Should Know

If you’re stepping into the real estate market in Walnut Creek or elsewhere in the East Bay, California, you might be wondering if there’s any financial help available for first-time homebuyers. The good news is—yes, there are programs designed to assist you, but it can get a bit complicated.

Local Grants for First-Time Homebuyers

Across California and the United States, many cities and counties offer first-time buyer grant programs. These grants typically provide a few thousand dollars to help with closing costs or down payments. They’re intended to give prospective homeowners a leg up in building equity and achieving homeownership in competitive markets like Walnut Creek and the broader East Bay.

If you want to explore these opportunities, it’s important to research the specific programs available in your local area. Every city or county might have different eligibility requirements and funding availability.

Federal First-Time Homebuyer Tax Credit: What You Should Know

Beyond local programs, there’s potential for federal assistance too. Recently, the Biden administration proposed a bill that could offer a $15,000 tax credit to qualified first-time homebuyers. Here’s what that means for you:

• It’s a tax credit, not a direct payment. Instead of receiving a $15,000 check, you’d reduce your federal income taxes by that amount in the year you purchase your home.

• Eligibility rules apply. You can’t have bought a home in the past three years. Even if you’re not technically a first-time buyer, you might still qualify if your last purchase was over three years ago.

• Income limits. To qualify, your income must be at or below 60% of your area’s median income.

• Home price limits. The home you purchase must be below the median home value for your area—for example, in the Bay Area, that could mean homes priced around $800,000 to $900,000 or less.

• Primary residence requirement. The house must be your main home, not an investment or rental property.

What’s Next?

This tax credit is currently a proposed bill, so it’s not yet law. For updates, you can contact your local congressional representative or follow real estate news in California and the East Bay. When and if it passes, we’ll be sure to update you here at Ask Brendan.

More Ways to Save in Walnut Creek Real Estate

Aside from grants and tax credits, there are other ways to save money when buying a home in Walnut Creek or anywhere in California:

• Ask for closing cost assistance from the seller or lender.

• Negotiate a rate buy-down to lower your mortgage interest.

• Explore state and local homebuyer assistance programs specifically designed for California residents.

Get Help with Your First Home Purchase

The world of first-time buyer credits and financial help can be overwhelming, but you don’t have to navigate it alone. Whether you’re buying a home in Walnut Creek or anywhere in the East Bay, reach out to us at Ask Brendan. We’re here to answer your questions and help you find the best financial strategies to make your homeownership dreams a reality.