Please also note, that the $8,000 is the maximum you CAN receive, but just because you are a first time homebuyer doesn't mean you'll get the maximum. The credit is for 10% of the purchase price, with $8,000 being the max you can get. So, if you purchased a home for $60,000 it would be $6,000! To apply for the credit you'll have to fill out the IRS form 5405 when doing your Federal Tax return! Now in 2008 when this started, the credit was a LOAN that had to be repaid over 15 years.....in 2009 it does NOT have to be re-paid as long as the purchased residence is YOUR primary residence for a minimum of 36 months after the purchase date....in other words, if you sell the home in 2 years you have to pay the credit back!!!
at 3:31 PM on Jul. 24, 2009