Some important things to know about the $8,000 credit available this year:
The home must be purchased between 1/1 and 12/31, 2009 and you (or your spouse) cannot have owned a home in the preceeding 3 year period.
The exact amount of your credit is determined by (a) the value of your home: the credit is 10% of the purchase price, up to a max of $8k, and (b) your income: the amount of your credit may decrease based on your income.
In certain instances, the credit can be used on closing costs.
The credit does not need to be repaid so long as the home is occupied for 3 years or more following its purchase. Otherwise, the credit will be recouped upon sale.
For more information, I suggest visiting the National Association of REALTORS website.
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