The recently passed HR 3221 provides for a one time tax credit of up to $7,500. As always, restrictions do apply. You have to be a first time home buyer, meaning you can't have owned your primary residence in the past 3 years. There are income limits, $75,000 for a single person and $150,000 for a married couple. This opportunity is time limited and  is available for home purchases from April 9th 2008 to July 1st 2009. If your loan is funded via a tax exempt bond (mortgage revenue bonds) you are NOT eligible for the tax credit. The tax credit needs to be repaid at $500 per year over 15 years unless certain exemptions apply. Before making any decisions based on above information, consult with your tax accountant for the full scope and impact for you.