if you are using an FHA loan for the purchase, then the $8,000 can be used for the 31/2 % down payment that is required by FHA. This can only be done in 10 states (Kentucky being one of the 10). However, in my area (Owensboro), there are no lenders currently having the program in place to accomodate this procedure. The catch is--the lender has to make a short-term loan to the buyer, until the stimulus funds are received by the buyer. I haven't been able to find a lender who is actually doing it. Let me know if you find one!