The $8000 tax credit allows purchasers to utilize state and local bond financing. This was a change from the language of the original credit Congress issued. As always, check with your tax preparer to make sure you have all of the qualifications.

Yes you can do both, a good site to reference that I have found helpful is http://www.myonlinemortgage.net. they also have direct links for the mcc program info.

Direct all your questions regarding the home buyers credit to http://www.irs.gov and do a search on your topic...there is nothing in their guidelines to suggest any certain loan would disqualify you.

Good luck - http://www.DIALdani.com