Can someone shed some light on this 8K credit with Obama's deal for home purchases. Is this only for first timers?

It is for First Time Home buyers. However, the definition of a first time home buyer simply means that you have not owned a home for the last three years. So if this will be the first home you will own within the last three years you should qualify. That said, the opinion of a professional taxpreparer should be sought before you make your decision.