FHA-approved lenders have received the go-ahead to develope short term bridge-loan products that will enable first-time buyers to use the benefits of the Federal tax credit upfrount to pay for their closing costs, buy down their interest rate, or to put more than the minimum 3.5% down. They can't use it to cover the initial 3.5% down. There are various sourses of downpayment assistance for buyers needing help with the 3.5% so it's still possible to cover your cash requirements in the purchase of the home. If you know of any first-time home buyers, have them give Danyliw & Associates a call at 303-880-2585 and we'll guide them through the process. Over 500,000 purchasers have claimed the tax credit this year.