$7500 tax credit - clarification

So, I just did a little research for all you prospective buyer's. Now, call me when you are ready to buy.....j/k


1. Who is eligible?
• First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years

2. How does it work?
• Eligible purchasers can claim the $7,500 credit on their annual tax return form.
• Amount of credit: 10% of cost of home or a maximum of $7,500

3. Repayment:
• Two years after the credit is claimed, the homebuyer will have to start paying it back.
• 15 equal annual installments will have to be paid back to the IRS every year.
• 6.67% of the borrowed amount or a maximum of $502
• If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon the sale.
• Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan.

4. Restrictions:
• Home purchase time limit:
• Homes purchased on or after April 9, 2008 and before July 1, 2009
• Home must be a single family residence (including condos, coops) that will be used as a principal residence.
• Home must be located in the United States.
• Home cannot be financed through mortgage revenue bonds.
• Income restriction:
• To qualify for full $7,500 credit, the taxpayer must make no more than
a. $75,000 for single returns
b. $150,000 for joint returns
• To still qualify for credit but at a lesser amount, the following income caps apply
a. $95,000 for single returns
b. $170,000 for joint returns

Hope that helps a little.