Looks like you have answers to your question. However, I think I should point out that if a person is buying a home solely for a tax credit, you might want to consult your tax advisor. They may be able to help you find other ways to shelter your income.
The 91506 zip code in Burbank has homes that would definitely qualify. One of the answers below talks about the 800k limit. But there is also a lower limit too.
Please let me know if I can help. I am very familiar with the Magnolia Park area.
303 N. Glenoaks Blvd. Ste. L-110
Burbank, CA 91502
323-821-2292 or email@example.com
I will attempt to answer your question with all of the details spelled out. This will require your attention; get a pen and paper ready or print this out for yourself.
1. The current homeowner credit of $6,500 applies to the TOTAL current homeowner. If you are part of a married couple filing separate then the credit is $3,250- each. REMEMBER, THIS IS A CREDIT FROM THE I.R.S. If your latest return finds you owing $1,000 then your total credit will be $5,500 to be returned to you.
2. This provision terminates for purchases made after April 30th, 2010. Therefore, you must be under contract and waiting to close at least by April 30th, 2010 and you must close by July 1st, 2010.
3. There IS an $800,000 limit on the cost of the purchased home.
4. Income limits apply! $125,000 for a single person and $225,000 for a married couple.
5. You must have owned a home for at least five consecutive years of the last eight years. Therefore, if you sold and move out a couple of years ago but resided in your home that you owned for at least five years previously then you would still qualify. I hope this short explanation suffices.
6. You do NOT need to sell a home to buy; you simply need to have owned a home in which you resided for five of the last eight years.
7. This home you purchase MUST become your personal residence so you MUST move there to qualify. Still, nothing in the law says you cannot keep your existing residence as a second home or income property.
If you are buying a new home to move into then if you have owned and lived in your current home for five consecutive years out of the last eight years, you will be entitled to $6,500-it makes no difference if you sell your current home.
You can follow the link below for more information.
Hope this was helpful.