Imagine getting a loan that is 100% interest free for your first home. The federal government has done some revamping of the First Time Home Buyer tax credit, which is exciting news for first-time home buyers. With it, you could save up to $7,500 on your first home purchase. This is an interest free loan that you have 15 years to repay. Add to that falling home prices and you have the chance to buy a home that will repay you with thousands in equity when the market turns around.

If you have owned a home in the past, don't despair! You may still qualify if that home ownership is 3 or more years behind you. However, if you're married, you may want to ensure that your spouse also has not owned a home for 3 years prior to your home purchase, as having a spouse who is or has been a homeowner in the last 3 years disqualifies you from the credit. If you're planning on, say, buying a home with a parent or child, there is still some luck in store: as long as you're unmarried, the credit can be applied to the party who is a first-time home buyer.

You have to be intending to live in the house you buy to qualify for this credit and have to buy said residence between January 1, 2009 and December 1, 2009. However, if you've jumped the gun a little and bought between April 9, 2008 and January 1, 2009, you can still qualify for a tax credit up to 7,500.

There are income limits to this tax credit. If you earn more than 75,000 a year for singles or 150,000 a year for couples, you cannot qualify for the full credit. There is some leeway of 20,000 for people who earn a bit more than the above amounts and you may qualify for a partial credit if this is your case.

This credit is open to a wide variety of real estate. In addition to single family homes, it covers condos, townhomes, mobile homes, houseboats and new construction. If you're choosing a home that is to be constructed, whether you qualify for the credit will be determined by the settlement date.

The credit must be paid back, but you have 15 years to do so. In the meantime, it will not be accruing any interest charges or late fees.

The First Time Home Buyer Credit is a great way to alleviate some of the expenses involved with buying a home. Using it wisely will mean that you may be able to buy a house sooner than you expected and deal with house purchase costs. It's only here for a short time, so if you're looking to buy a home, perhaps now is the best time ever!