Financing

$10,000 State Tax Credit
A $10,000 state tax credit for purchases of new construction homes in California will begin for people who close escrow on or after March 1, the California Franchise Tax Board announced. There is $100,000,000 allocated and it is going quickly. Reserve your funds immediately: www.ftb.ca.gov/individuals/New_Home_Credit.shtml

$8,000 Federal Tax Credit
A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. www.federalhousingtaxcredit.com

Small Business Administration (SBA) Financing
Loans to small business owners to purchase their place of business or live/work units through The Small Business Administration (SBA) has been greatly enhanced by President Obama’s Economic Stimulus plan. Loans approved after February 16, 2009, will be offered with significantly reduced loan fees. The Stimulus Plan completely eliminated the 0.50% SBA Fee charged on the first trust deed bank loan in a 504 loan structure. The plan also reduced the fees associated with the SBA piece of the structure from 2.15% of the loan amount to just 0.625%.

These changes will result in significant savings for buyers looking to finance purchases with SBA 504 loans. For example, consider a $2,000,000 purchase with just 10% down payment. The SBA fees under the old plan would have totaled approximately $5,000 on the bank loan and $17,200 on the SBA loan. With changes announced today, using the same purchase price and down payment, the total SBA fees are reduced to just $5,000 (a savings of $17,200). The new fee structure is expected to remain in place through the balance of 2009.

With respect to interest rates, the current SBA debenture rate is 5.60%. On the bank side, the 5 and 10-year fixed rates are 6.25% and 6.75%, respectively, resulting in a “blended” SBA 504 rate for owner-users of 5.96%.

Conditions for small business to own their place of business or live/work lofts has never been this attractive. As long as you can demonstrate you use 51% of your live/work loft for your business you can qualify and only put 10% down while locking in great interest rates. Plus, using the same property as your place of business and residence allows you to qualify for higher loan amounts.

Find out more