If you are a first time home owner you probably know there has never been a better time to purchase a home than right now. Not only do you get an $8000.00 tax deduction for doing so but you will have the lowest possible interest rates to choose from as well! Current homeowners are eligible for a $6,500 tax credit through April 30 as well, providing they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.