Hello. I just purchased my first home and am getting the $8K tax credit. I know many people are saying to use the majority of the credit to pay down the principal and get interest savings. However, I plan to sell in 5 or 6 years, so if I do not stay until the mortgage is paid off, I will not see an interest savings. However, the house does need repairs (pretty much a whole new kitchen, among other things). Would it be a good idea to invest the whole $8K in renovations in order to get a better selling price down the road, or should I hold on to some of it and save/invest it? Thanks.

This is your personal decision. Do what ever is best for you.

Upgrading the kitchen will maintain (but NOT increase) the home's value, so that is one way to use the money.