You may qualify for $8,000 tax credit if you have not owned a primary home in the last three years and your adjusted income is less than $75,000 but you must close before December 1, 2009. Income limit is $150,000 if you file jointly. If the purchase price is less than $80,000, you receive 10% of the price. The benefit reduces up to $90,000 individual and $150,000 joint adjusted incomes. If you already filed your 2008 tax return, you may file an amended return and get your money right away.

Combine this with buying a HUD home and do FHA financing, one can put down $100 instead of the required 3.50% down payment. We recently helped a client buy a HUD home with FHA financing, he invested $100, received 3.00% for closing costs, points and pre-paids and bought his rate down to 5.00%. The home is in excellent condition and has all the appliances. The price is $94,000 but the comps show it is worth 115K (was purchase new four years ago for 129K) and he will get the $8,000 soon after we close…..GO FIGURE!!