If you are a first-time homebuyer of a principal residence in the US during April 9, 2008 through July 1, 2009, the government is giving you a 10% credit or $7,500, whichever is less, on your TAX RETURN.  Although this is called a “credit” it must be paid back in equal installments over 15 years starting two years after the date of the purchase.  This is an interest-free loan from the government!  You must have a modified adjusted income of under $170K for joint filings and $95K for singles.  Also note that the credit/loan is due immediately if you sell your property.