Updates from scottcowan HUD announced earlier today that the $8,000 Tax Credit Advance can be used towards closing costs or an additional downpayment on FHA loans. It is estimated that over 150,000 homes will be sold due to the change in lending rules. Over 100,000 sold to first time buyers and the remainder of homes sold to buyers moving up as they will have been able to sell their homes.
For more information specific to Washington State residents please visit Washington State First Time Home Buyers Advance.
Residents of Washington State may be able to use the $8,000 for the initial down payment with State assistance. Details are still fuzzy. In other states that have set up down payment assistance programs you may be able to use the $8,000 for your down payment. Check with your local Realtor.