President Bush just signed H.R. 3221, the "Housing and Economic Recovery Act of 2008" on July 30, 2008 giving an new tax credit up to $7500 for qualified first time home buyers.

If you have not own a principle residence in the past 3 year, you might be eligible for the new tax credit if you purchase a home between 04/09/08 and 07/01/09.

For example, if you owe IRS $6000 on your income tax and your qualified tax credit is $5000, your net tax liability is only $1000.

The tax credit amount is 10% of cost of home not to exceed $7500. Recapture of 6.67% of the credit to be repaid each year for 15 years.

Click her for more detail on the First-Time Home Buyer Tax Credit program.