If this line of thinking is representative of many buyers then sellers need to scared, very scared. Buyers may in fact be one meal away from starving yet still are willing to bite way more than they can chew if only someone, anyone would give them all(not some) the money to do it.

To say that those with a home to sell are in profound trouble would be a profound understatement.

This is one of many reasons to not buy in today's market....much lower prices are required to bring out real buyers that can afford real down payments.

Dear 1st timer-

In California it is NOT possible YET...but in some states they are doing it. And, some states are allowing the tax credit to be used for closing costs, but not the down payment. Even in the states where they are allowing them to use that 8,000, they still have to come up with 3.5%. It is confusing....but that is how it is for California right now. I talk to the lenders all the time to get updates on the market.

Kind regards,

Joan Patterson, B.A., A.S.P., G.R.I., Realtor, License # 01431647
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730 http://www.calljoan4homes.com http://www.socalreopartners.com

So the New Release from HUD is no longer correct. Link below will take you to that link
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm

Dear 1st timer,

Tony is right, your $8,000 tax credit cannot be used as a down payment. However, if you need assistance from a lender as to which loan programs would be good for yourself and your family, please let me know if I can put you in touch with a lender. I see you are looking at FHA loans and the minimum down payment now is 3.5%. Please feel free to contact me if I can help you.

Kind regards,

Joan Patterson, B.A.,A.S.P., G.R.I., Realtor, License # 0143647
Keller Williams Realty
8150 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
951-204-1864 http://www.calljoan4homes.com http://www.socalreopartners.com

The tax credit cannot be used towards the minimum required down payment