To qualify for the tax credit, you must be a first time homeowner or haven't owned a residence in 3 years.  Home purchase must occur on or after January 1, 2009 and before December 1, 2009.  For the purpose of the tax credit the purchase date is the date when closing occurs and the title of the property transfers to the home owner.

The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.00

The tax credit amount is reduced for buyers with a modified adjusted gross income of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.

No. The tax credit does not have to be repaid

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, mobile homes and households.

Participating in the tax program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine there tax credit amount and then claim this amount on line 69 on their 1040 income tax return. No other applications or forms are required and no pre-approval is necessary. However you will want to be sure you qualify for the credit under the income limits and first time home buyer tests.

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax witholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/hers take home pay. This money can then be applied to the down payment