Recently changes have been made to tax laws based on the Economic Recovery Act of 2008. Because of this change --- first time homebuyers can take advantage of a large tax break. The tax credit is equal to 10% of the purchace of your home up to $ 7,500.
This credit is available for singles who make up to $ 75,000 and for married couples filing jointly the credit is available for those earning up to $ 150,000. Now this money is not yours to keep, per say...it does have a payback provision. This payback is similar to an interest FREE loan. If you qualify for the full amount --- it would mean paying back approximately $ 500 per year.
For more information about the implications of the new tax credit --- call your tax professional. Or, ask your realtor for a referral. There is a FREE brochure that is available from the National Association of REALTORS --- just call your LOCAL realtor and request a copy.