First Time Homeowner Tax Credit:

(Available for homes purchased April 1, 2008 through June 30, 2009)

  The new law will extend a tax credit of up to $7,500 to first time homebuyers. The tax credit is for 10% of the purchase price, up to $7,500, but phases out for higher-income homeowners. This is a tax credit, not a deduction. It reduces the homeowner's tax bill by up to $7,500 for the tax year in which the purchase was made (please note that taxes must be filed). It is a one time credit.

  There is a catch in that the money has to be repaid over 15 years, starting two years after the home is bought. The tax credit is truly an interest-free loan. If the tax credit is taken, the individual's income tax bill will increase by $500 a year for 15 years.  If the house is sold before the money is paid back, then it will be due and payable upon sale

 FHA Modernization Act:

 100%financing of FHA loans is still available until Sept 30. 

Seller funded down payment assistance is no longer available after October 1^st. The loan must be final approved on September 30^th and must close by no later than October 31st.

Source: WR Starkey, Walter Scott