It has just been announced that first time home buyers can use the $8000 tax credit to pay down their interest rate and closing costs on an FHA loan.  FHA loans are great for buyers who do not have the required 10-20% down payment money to buy a home.  With FHA, a qualified buyer can purchase a home with 3.5% down.  FHA loans all but disappeared in the seller boom years due to the birth of the 100% financing programs (the same programs that required no proof of income, no worries about … [Read more...]