One of the best items to come along from the Obama administration so far is the improved tax credit for first time homebuyers. You are a first time home buyer if you have NEVER owned a home, OR if neither you nor your spouse has owned a home in the past 3 years before your purchase. The tax credit is 10% of the purchase price up to $8,000, when you purchase a principal residence before December 1, 2009. Purchases made from January 1, 2009 onward are eligible. Unlike last year's tax credit, the new credit does not have to be repaid, as long as you stay in the home for 3 years.
If you, your children, or grandchildren are not homeowners, this is a wonderful incentive ON TOP of record low interest rates, a housing affordabilty rate not seen in years, and a huge inventory.