Hi Anthony6109,
No credit that I know of when selling or buying a house. As for deductions, you would be able to deduct interest on the loan and property taxes (up to $10k total tax deduction) as an itemized deduction. If the standard deduction is greater (like it is for most taxpayers) it is possible to get no tax benefits from purchasing a house (this of course ignores any economic or lifestyle benefits).
At 62, making a withdrawal from an IRA is penalty free. However, if the IRA is a traditional IRA (not a Roth), then you will pay ordinary income tax on the withdrawal to the extent the IRA had deductible contributions. If your IRA is a Roth IRA, you would be able to tax a distribution tax free to use in buying your house.
As for selling your current house after buying your new house, that should pose no tax problems. You are entitled to a $250,000 gain exemption ($500,000 if married) for any gain on the sale of a principal residence, so long as you lived in it for 2 of the last 5 years.
I hope this helps!
Marty
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