Many of you have asked if you can use the $8000 credit for your down payment. The answer is yes and no.

FHA-approved lenders can develop bridge loans that home buyers can use to help cover closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. The homebuyer still needs a down payment of 3.5% of the purchase price but may increase the down payment by using the tax credit. Buyers must use FHA-backed financing with an FHA-approved lender.

For more on the tax credit, go to First-Time Homebuyers Tax Credit.