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If you are buying a home this year, either for the first time or if you haven't bought a home in the last three years, you'll get a tax credit of up to $8,000 to help with the down payment. 

 What is the First Time Home Buyer Credit?
A Federal Income TaxCredit of 10% of the purchase price up to $8000.

 What is the definition of a first time home buyer?
Generally, a buyer who has not owned a residence during the three-year period prior to purchase.

Who is eligible to claim the tax credit?
Qualified first time home buyers purchasing any kind of home-new or resales. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.

What types of homes will qualify for the tax credit?
Any home purchased by an eligible first time home buyer, used as a principal residence. The home may be a manufactured home, or a modular home located in a land-lease community or on private land.

Are there any income limits to determine who is eligible to take the tax credit?
Yes. Modified adjusted gross income (MAGI) of up to $75,000 for single or head of household buyers and $150,000 for joint tax payers.

If my MAGI is above  the limit, do I still qualify for a credit?
Possibly. A partial credit of less that $8,000 is available for some taxpayers subject to phase-out limits.

Are there any circumstances for which qualified home buyers may not receive the maximum $8,000 credit?
In general, the credit is equally to 10% of the purchase price but is capped at $8,000.

I heard the tax credit is refundable. What does that mean?
Refundable means that it can be claimed even if the taxpayer has little or not federal income to offset. Should that be the case, the IRS will issue a check to the home buyer for the difference between the tax due and the amount of the tax credit.

Does the tax credit have to be paid back to the government?
No.  This tax incentive is a true credit. However, home buyers must use the residence as a principal residence for at least three years or face re-capture of the tax credit amount.