$7500 for free! Yea, right!

The new tax credit on the surface seems good. But, the devil is in the details. Make sure you understand it.

You have to come out of pocket for your down payment still. Good news is that there are still 3% down programs depending on your income and the place you buy a home.

You then get a credit against your income taxes due, not a deduction, so that is good news! You can then (for this year) change your exemptions to take home more money because you will not own the government next April as much.

Be careful of the income limitations and the phase outs too!