That's right. If you buy a house this year, you're eligible for up to $8000 in refundable tax credit from the Feds. That means that if you owe no additional taxes, they'll cut you a check for the lesser of 10% of your finished home value (presumably including rehab expenses) or $8,000.
Then, if you buy a property in the Covington Arts District, you'll be eligible for a $6000 forgivable loan (just stay here 5 years).
$14,000 isn't chump change. Then, there's $25,000 in potential low or no-interest loans available through the city, which they typically will subordinate to a bank loan, which lessens the amount of down payment you'll need to get a loan for a full renovation.
There's more and a picture of one of the available properties in our recent blog posting.