A first time home buyer can put down 3.5% if they are using an FHA mortgage. The tax credit has nothing to do with the down payment. At this time, the purchaser needs to close by November 30,2009 in order to receive the credit.

Luke,
the $8,000 tax credit for first time buyers and the 3.5% minimum downpayment for an FHA loan are independent of one another, meaning that you can do both.
If you would like information without obligation or are seeking personal assistance and the services of a professional Realtor, please email me at your earliest convenience.

Kindest regards
Nick Welsh
Email: nickwelsh@weichert.com
Web: http://www.nickwelsh.pro