According to an article in the Realtor Magazine online written by Robert Freeman, FHA approved lenders can go ahead and develop procedures for first time home buyers to use the benefits of the tax credit upfront. FHA approved lenders can develop bridge loans that home buyers can use to help cover closing costs, buy down their interest reates or even towards the down payment. The loans cannot be used to cover the minium 3.5 percent down payment but can be used in addition to the 3.5 percent minimum down payment.

The first time home buyer tax credit is a great incentive for first time home buyers – owning a home can be more affordable than renting. The prices of homes are at a low point and interest rates are also low. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. Note that the credit does not have to be repaid and is fully reimbursable so households can get their credit returned to them in the form of a payment.

You can learn more about the tax credit at Realtor.org