I wish I could say this credit will help the housing market but sincerely I do not think it will. This credit is still just for 1st time home buyers even though it does not have to be paid back it is still just $500 more than the previous one. With unemployment raising more and more people do not have the funds nor the debt to income ratio to qualify for a home loan much less the necessary down payment for 1st time buyers. If they do a 100% loan (which most banks and or mortgage companies have moved away from) they will end up in a high interest rate of a sub prime mortgage. (thus where many home owners are now)

Exactly Dianatn . . . I have seen that myself since I have thought about getting a home with great deals out there. The banks have to be ready to loan people money and they are being stingy. :-(

TO Brown Eyed Girl---Yes, you must amend your 2008 tax return and NOT claim the first time home buyers credit this year, which will mean that you will now owe the IRS back the amount of your housing credit. Then when you file your 2009 taxes next year claim the first time home buyers credit next year and there will be no repayment ever. There was a lot of consusion on this issue and it doean't seem fair that if taken as a credit on your 2008 tax return you must repay it over the next 15 years, but if taken on your 2009 tax return there is no repayment. If you need further clarification on this issue please visit the IRS website www.irs.gov. Thanks and good luck to you.