The home purchased must be their primary residence.

Buyer cannot have owned a home during the past three years.

Tax credit is up to 10% of the home's value (not to exceed $8,000).  Annual income caps to qualify for the tax credit will increase ($125,000 for single filers/$225,000 for joint filers).

Buyers do not need to repay the tax credit if they occupy the home for three years or more.

Members of the military who are serving overseas on official extended duty for at least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit.

There is a new $6,500 tax credit for current or previous homeowners purchasing a primary residence:

Now, qualified repeat homebuyers would receive a tax credit of up to $6,500 if they sign a purchase contract by April 30, 2010, and close between November 7, 2009 and June 30, 2010. 

Eligible homebuyers must have lived in their current home for five consecutive years of the past eight years. 

The new home's cost can be less than that of the current home.

Tax credit is up to 10% of the home's value (not to exceed $6,500).  Purchase of homes priced above $800,000 are not eligible for the tax credit.

Annual income caps to qualify for the tax credit will increase ($125,000 for single filers/$225,000 for joint filers).

Buyers do not need to repay the tax credit if they occupy the home for three years or more.

Members of the military who are serving overseas on official extended duty for at least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit.

Consult a tax advisory for details about your specific situation.