HUD has been privately and publicly discussing how to use the tax credit, not just as a tax credit to lower taxes therefore effectively increasing homebuyer's income but also as a way to use the credit to directly buy a home. Well, it is official, qualified buyers can now obtain a second mortgage/bridge loan to 'borrow' the tax credit to be used as their down payment. Effectively, you can buy a home up to a little over $200,000 using an FHA loan with no down payment.
Further information is available at HUD's website: http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
Of course:
FHA loans are infamous for being non credit driven and now they can be had with no 'skin in the game'. I'm guessing that most politicians won't claim that this is irresponsible & predatory lending when the government is sponsoring it. I should note, however, this was one of (along with many others) the many actions that caused the current real estate meltdown.
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