I am on an H1B visa and have been working in the US for 4+ years. I purchased a condo in India 2 yrs ago (2007) and got a mortgage (through a bank in India). I make a monthly mortgage payment out of my salary here (I have no other income) to this bank in India.

On advice of my tax filers, Last year, I claimed the interest deduction on my US tax return (I don't file taxes in India as I don't have any income there). I did this for the first time for the 2008 tax year and the refund came through without any hassle.

But I was in USA continuously for the past 4 years. Now am I eligible for first time tax credit? Is it possible for me to file amendment of my last year tax filing and pay the last year refund back and go for the $8,000 first time home buyer tax credit?

According to this IRS FAQ:

http://www.irs.gov/newsroom/article/0, id=206291,00.html

Foreign homes do not disqualify you for the credit.

"Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States."

This is incorrect. The question pasted in above post is for a prior home and not for the purchase being claimed.

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.