The first time home buyer tax incentive doesn't work very well as most first time home buyers need the money up front, not a year down the road. If they used that money as an instant rebate towards covering closing costs, reducing interest payments or helping with the down payment it would actually work. There are fewer and fewer low down conventional loans available. FHA requires at least 3%. On a $200,000 home the rebate would cover this. If all other standards on the borrower stayed the same the rebate could work. It seems weird that 2 years ago anyone could get a zero down conventional loan and now someone with great credit can't. A compromise like this could really help.