Government Considering: Home buyer tax credit to be a loan for down payment!

Originally for 2008 the 1st time home buyer tax credit started as an interest free loan that had to be paid back at the rate of $500 a year. This year the credit has been increased to $8,000 or 10% of home purchase price (whichever is lower) never to be paid back. Wow what an incentive! FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront on May 29th. With this 1st time home buyers will be able to use the funds upfront to pay for closing costs, up-front lending fees and part of the down payment. As far as I know you will still have to come up with the minimum of 3.5% down on your home but, this will minimize your out of pocket expenses making it easier. More information to come when I have it. Have a great day!