The $8,000 homebuyer tax credit was a federal initiative introduced during the housing crisis back in 2008 to stimulate homeownership. More specifically, it was part of the Housing and Economic Recovery Act of 2008 and extended briefly through 2010. It should be noted that this credit once offered direct relief for first-time homebuyers. Yet, it is no longer available today.
If you’re researching the California first-time homebuyer credit or looking into options like the CalHFA MyHome Assistance Program, it’s important to understand that this $8,000 tax credit was a federal program and not specific to California.
Expired Homebuyer Tax Credit
The details of this expired credit can be summarized as below:
- It applied to homes purchased between January 1, 2009, and April 30, 2010.
- First-time buyers could receive up to $8,000 in refundable tax credits.
- Buyers had to live in the home as their primary residence for at least three years to avoid repayment.
- The credit was refundable. In other words, it could be claimed even if the buyer owed little or no tax.
Since its expiration, there has been no active federal homebuyer tax credit, although proposals for a new one (including a potential $15,000 credit) have been introduced but not passed into law as of 2025.
Alternatives
In California, homebuyer support has shifted toward programs as follows:
- CalHFA MyHome Assistance Program – deferred-payment loans covering down payments and closing costs.
- California Dream For All 2025 – shared appreciation loans (paused in 2025 due to funding limits).
- Pathway to Home – a closing cost grant California buyers may qualify for, offering up to $10,000 in assistance.
These are part of broader California housing assistance for first-time buyers and serve as financial tools to lower upfront costs—although they do not function as tax credits.
If you’re seeking a first-time homebuyer tax break California residents can still use, check if you satisfy eligibility criteria for federal mortgage interest deductions or property tax deductions instead.
Need Help?
If you need professional assistance, contact Dimov Tax today for a smart plan for your first home purchase.