Buyers will soon be able to use the first time home buyer tax credit for a down payment

I have great news for people who have the income to afford to buy right now but not enough savings for the down payment. The Secretary of Housing announced that the government will soon allow buyers to borrow against their first time home buyer tax credit (up to $8000) for their down payment.  Right now, the lowest down payment option for most buyers is 3.5% with an FHA loan. On a $200,000 home (there are many in the East Bay), $8000 is more than enough to cover the down payment.  Depending on how the regulations are written, this could amount to a return to 100% financing.  The Federal Housing Administration will publish a policy "soon."