If you haven't owned a home in the past three years, you may be eligible for the first time homebuyer tax credit offered by the federal government, but you must buy before December 1, 2009. Income qualifications apply and may reduce the amount of your tax credit. Individuals who earn up to $75,000, and married couples jointly earning up to $150,000 are generally eligible. All the details on the first time homebuyer credit are available at the IRS website: www.irs.gov.
With mortgage rates low, home prices down, and a generous tax credit, this is an excellent time to buy your first home.