Home buyers had hoped for a $15,000 tax credit to buy a new home, but will have to settle for $8,000.  The Senate reduced the buyer credit from a proposed $35 billion credit to support home sales for a more modest $2 billion to $3 billion provision.

The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 from $7,500.

The $8,000 homebuyer tax credit does not need to be paid back, unlike the original $7,500 first-time homebuyer tax credit. To qualify, the purchase has to be made between January 1 and August 31, 2009 and you have to stay in your home for three years.

The stimulus bill is expected to be signed by President Obama on February 17th 2009.