Can I get the home encencentive if I buy the home from my fathers estate at full market value

Who Cannot Claim the Credit
1. If you are a non-resident, the home is located outside the United States, or you acquired home by gift, inheritance or from a related person. Resident aliens even with ITIN are eligible. Your U.S. Tax Return: First-Time Homebuyer Credit (http://taxipay.blogspot.com/2009/01/first-time-homebuyer-credit.html)

Actually, I think the OP MAY be on to something here.

If he buys the house at full value, he is exchanging the house for FMV cash, which goes into the estate; a fair exchange that meet the arms-length definition for business executed between related parties.

Now the only question is whether the father's estate is considered to be a "related person". Understand that the estate is a separate tax entity from the descendant. While the estate's executor will file the decendent's last required personal tax return, on that return the decedent's SSN is used.

On any fiduciary tax return or estate tax return, the estate will use its own federal tax identification number.

I believe that the OP should call the IRS and ASK if the estate considered to be a related party as defined by tax law as it applies to the First Time Home Buyer's Credit.