And these are the rules for that Tax Credit Borrowing Situation!

http://moneyfeatures.blogs.money.cnn.com/2009/06/02/fha-backs-away-from-no-down-payment-loans/

Here is how HUD decided those funds could be used. The problem as they see it and it is understandable, is that they want buyers to have a financial stake in their property. Follow the the link for specifics.............

$8,000 Tax Credit Could be Used for Down Payment...In Advance!

Check out Saturday's article in the Seattle Times regarding FHA's recent approval of the u se of the $8,000 Tax Credit as a loan against the tax credit on your tax return for first time buyers. First time buyers is defined, in this instance, as buyers who haven't owned a home in 3 years.

http://seattletimes.nwsource.com/html/realestate/2009279540_taxcredit30.html