First time home buyers IRS loan (credit)

The IRS new $7,500.00 first time home buyer loan program is available to first time buyers of homes. The IRS defines a first time buyer as being a US citizen who has not owned a primary residence for the last three years. The Loan is taken as a credit on your tax return.  Restrictions and limitations apply.

The IRS defines a home as your primary place of residence. That leaves it open to mobile homes, manufactuced housing and so on.

Note: that the first time home buyers tax credit is really an interest free loan and not a true credit. There are buy by dates and other rules.

After you take the credit you must repay the credit (loan) at the rate of $500 a year beginning on the second tax year after the year you took the credit (tax year 2010). (please check this info at the irs.gov web site) The loans or credit must be repaid if you sell the house, change your primary place of residence, convert the house to a rental and so on before you have paid the IRS back. 

Keep in mind that if you fail to repay the IRS there will be very stiff  penalties and it is no fun being on their bad side.

For more on this http://www.housingstimuluspackage.com/