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As the economy weakens, many people are selling their homes.

But local experts told Action 4 News Rio Grande Valley may want to consider buying a home instead.

This year, the federal government is offering a new tax credit worth $7,500 for first time homebuyers.

"It's a good thing because first of all it's interest free and the way the economy is right now anybody can use $7,500 with no interest attached to it,” said accountant Valente Resendez.

The rebate spans a 15-year period. Those who claim it only pay back $500 a year.

Resendez said another incentive the repayment comes out of your tax return every year so you don't have to pay out of pocket

"People can use this money to pay their closing cost or moving expenses or purchase furniture needed for the house,” said Mr. Resendez.

To qualify you must:

• Not have purchased a home in the past three years
• Make less than $95,000 a year if single or $145,000 a year if married
• Purchase the home between April 8, 2008 and July 1, 2009            

"You cannot buy it for investment to rent it out or anything like that you have to occupy the house,” Resendez said.

Anyone who takes the credit and sells the home would have pay back the balance on your loan in full.

Resendez has done this line of work for years and says this is the first time he sees this sort of credit.

He believes the government is trying everything possible to stimulate the economy.

"Hopefully, people won't just put it in their savings account,” said Mr. Resendez.