UPDATED UPDATED UPDATED Thursday 5/14/2009 – the entire letter has been rescinded. After thousands of blog posts by excited and misinformed real estate agents HUD has reversed any information which would have been valid as of yesterday (Wednesday 6/13/2009).

Wednesday 5/13/2009

The First Time Home Buyer’s Tax Credit can NOT be used (directly) as a down payment. The Tax Credit itself is being used as neither the down payment nor down payment assistance rather is being used to secure a loan which is either secured by a second lien on the property or a bridge type loan only from HUD approved organizations or lenders.