Here’s a great link that explains the 2009 Federal Housing Tax Credit for “First Time Homebuyers”:

http://www.federalhousingtaxcredit.com/2009/home2.html

It’s important to note that the government’s definition of “First Time Homebuyer” is not exactly as you would first think. According to the government, a “First Time Homebuyer” is a person who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.