Well, there is even more good news now for first time home buyers who want to take advantage of that federal tax credit of as much as $8,000—they soon will have another option if they want to use that tax rebate as a down payment on a home.

On the tails of a similar Florida program, the federal government is starting its own FHA down payment assistance program in the next few weeks which will allow lenders to credit homeowners up to $8,000.

HUD Secretary Shaun Donovan said they want to enable FHA borrowers to access the homebuyer tax credit funds when they close on their home loans, so that the cash can be used as a down payment,

He said FHA approved lenders will be allowed to make the tax credit available by using short-term bridge loans.
           Essentially, that means buyers can borrow against their anticipated tax credit to use the money for a down payment on a home instead of having to wait until they file income tax returns to get the money.

First time home buyers and their spouses are people who have not owned a home in the past three years. They must meet certain income guidelines, but the guidelines are very generous.