There are many aspects of the Housing and Economic Recovery Act that can help first-time homebuyers, but there also are many misconceptions.

This law, which was signed a few months ago by President Bush, allows a tax credit equal to 10 percent of the home purchase price, up to $7,500 per homeowner.

While the money comes to the homeowner in a check at tax time, it must be paid back over 15 years. It works as an interest free loan.

The recovery act was designed to help about 400,000 borrowers in danger of losing their homes by allowing present homeowners to refinance into more affordable government-insured mortgages.

What many people who are considering buying a home for the first time don't realize is this act also has a benefit for them, according to Mark Twentier, a Northwood Realty agent from Slippery Rock. The act identifies a first-time homebuyer as anyone who hasn't owned a home in the past three years, he said.

"Many people don't realize they qualify because they're technically not first-time homebuyers,"he said.

The benefit comes in the form of a tax credit of up to $7,500. Many people expect that in an up-front cash payment, but that's not how it works, Twentier said.

"People think they get $7,500 up front and that's the biggest misnomer," he said.

The cash payment does come all at once to the homeowner, but it comes with the tax refund they receive in the spring, he said.

The homeowner is then expected to pay the money back over 15 years. That is a payment of $40 per month.

"It works as an interest-free loan,"he said.

Those are hard to find anywhere else, Twentier said.

"The majority of my clients go to the closing table with very little in their savings," he said."To me it's a disservice if (an agent) isn't telling their clients about this."

Chuck Swidinski, an agent for Prudential Preferred Realty in Butler, said he's been promoting the new act for a few months.

"It is a good idea because it helps people out with that tax credit," he said. "First time homebuyers should definitely take advantage."

The loan can help new homeowners with extra work that a new home may need, according to Sheryl Eagle, an agent with Coldwell Banker Real Estate in Butler.

"It's much better to have an interest-free loan if you need the money," she said.

Eagle said she's been promoting the option for the past few months. About seven or eight of her clients have expressed interest in applying for the loan, she said.

As far as the rest of her real estate firm is concerned, she didn't have numbers of clients taking advantage of the act, but, "I know everybody's talking about it," she said.