The credit is equal to 10 percent of the home purchase price, up to a limit of $6,500.
The purchase price is generally your down payment, if any, plus your mortgage.
A mortgage can be a first or second mortgage or notes you gave the seller in payment.
The credit does not apply to any home purchased for $800,000 or more.
The home can be a house, a condo, co-op, house trailer or houseboat, within the United States.
Vacation and rental homes are not eligible.
If you currently own a home, you do not have to sell it in order to qualify for the credit. Simply use the home you purchase as your principal residence.