Don Tepper

No. You do not qualify.

From the IRS Web site:
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Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase are considered first-time homebuyers. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008. In addition, Long-time homeowners who buy a replacement home after Nov. 6, 2009 or in early 2010 can also qualify. Under this rule, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence. For an eligible taxpayer who, for example, bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/19/09)
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It's crystal clear: "You must have owned and used the same home as your principal residence for at least five consecutive years of the past eight-year period."

That Q&A comes from the IRS site at http://www.irs.gov/newsroom/article/0,,id=206291,00.html

The main IRS page on the tax credit can be found at http://bit.ly/HomeBuyerTaxCredit - Yesterday, 18:43

Yes, you'd need PMI.

What you might be able to do is, after purchasing, refinance it for $180,000. Then you'd have the equity needed to eliminate PMI.

Check with a good mortgage broker for more information. - Yesterday, 18:33

Sure.

However, I've never heard of a successful house trade. You'd be much better off selling the house in Denver, then buying one in Hendersonville. - Yesterday, 18:30