Generally speaking, FHA qualified lenders will be allowed to loan against, or purchase the credit from the buyers, under specific guidelines and regulations. This will provide the buyer with additional funds to supplement their minimum 3.5% down payment or to cover closing costs.

This is one more way to help home buyers utilize all the tools available to them. However, the Federal Tax Credit program is set to expire on December 1, 2009. Home buyers must close escrow by that time to qualify for the Tax Credit. If you qualify for the Federal Tax Credit for first time home buyers, now is the time to be looking for your new home!