At this time you can not use the Tax Credit for the down payment. However there are still ways to get 100% loans and have the Seller pay your closing cost. Then when the tax credit shows up, you can use it however you see best.

Call or email and we can discuss your specific options and I can put you in contact with the right financing to handle your situation.

Gene Whittle
859-816-7653
gene.whittle@fuse.net

I see that you asked two questions. We are expecting an announcement, maybe this week, in regard to the Federal Home Loan Bank downpayment assistance program that is available each year. It's been somewhat delayed but is supposedly going to be released around April 15th. Not every bank is a member of the Federal Home Loan Bank but most community banks are.
You can contact Jason Welch, David Vu or Jason Payne at Victory Community Bank ( they have an office on US 42 in Florence/Union area near Kroger's) to inquire. There are limitations on income, etc but, if you qualify, the funds are reserved mid-April and you are able to close by the end of May. The funds are depleted very quickly so you want to be one of the first in line to register.
In regard to closing costs, you can always ask the seller to pay, for example, up to $3000 in closing costs and pre-paids as part of your offer on a property. You may have to make a higher offer to "encourage" the seller to agree but this is not unusual, especially with first time home buyers and will come as no surprise to the seller's agent.
Feel free to contact me if I can help in any way.
Good luck!
Rainey DeLotell
RE/MAX Affiliates http://www.kyhomes.info