Q: How much is the credit?
A: The tax credit would be $8,000 or 10% of the purchase price, whichever is less.

Q: What type of purchase is eligible?
A: Similar to the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit included in the 2009 economic stimulus plan is available for the purchase of a principal residence by first-time homebuyers.

Q: Who qualifies for the first-time homebuyer credit?
A: According to the IRS, any taxpayer who has not owned a home during the 3 years prior to the date of purchase can qualify for the credit.

Q: And I really don't have to repay the credit?
A: No. This is a change from the previous $7,500 tax credit. However, if the home is sold within three years of purchase, the credit will be reversed.

Q: Are there income limitations on the tax credit?
A: The tax credit begins to phase out for individuals with adjusted gross income over $75,000 ($150,000 for joint filers).