Governor Arnold Schwarzenegger proposed and extended tax credit as a portion of his job creation initiative to help bolster the real estate market in California.  The new tax credit will be for first time home buyers that purchase their home between May 1st and December 31st this year.  

The tax credit is for 5% of the purchase price up to $10,000. 

The bill increases the original $100 million dollar cap to $200 million to be provided as a credit to those looking to purchase their first home this year. The tax credit was originally designed to be available for buyers that were purchasing new homes and has been opened up to new and existing homes.  For more information regarding the tax credit please go to the State of California Franchise Tax Board .

The Veterans Administration announced that zero-down loan limits for VA-guaranteed mortgages will be reduced to $437,500 in San Diego County. The high-balance VA jumbo mortgage program started in 2008 and allowed for zero down loans up to $697,000. As prices declined, that number was reduced to $593,750 for 2009. 

Median prices across Southern California stabilized in 2009 in response to the high balance loan program, foreclosure stays, and home buyer tax credits. San Diego County's median price rose from $323,000 in October 2008 to $325,000 in October 2009. It is anticipated that the 2010 VA loan limit should facilitate approximately 75% of the sales prices for 2010. 

2010 VA loan limits in Southern California: 

San Diego $437,500 

Los Angeles $593,750 

Orange $593,750 

Riverside $417,000 

San Bernardino $417,000