To be eligible for this $8000 credit, you cannot have owned a home for 3 years. The credit may be used in 2008 or 2009 tax returns. The tax credit also depends on your income. If you buy a home this year, and your 2008 income was less than your 2009 income, it would make sence to file for this credit in your 2008 return. However, if you think your 2009 income will be less, due to cut backs, it would make more sence to file your tax credit in your 2009 return to get more out of it. With all the foreclosures and good deals, now is a great time to buy.