HUD has announced that it will allow qualified homebuyers purchasing a new home through the FHA program to use the potential of their First Time Homebuyer's credit to help with their down payment or closing costs. FHA approved lenders will be allowed to advance the credit for those purposes. HUD is not waiving the traditional down payment requirements. The home owner will still have to have to be able to provide, from their own funds, at least 3.5% of the appraised value. The new program will allow homebuyers take actions that will allow them to save money on interest over the life of the loan. HUD is hoping that these changes will help taxpayers to buy a home now and help grow the housing market and the economy. More info can be found in the HUD press release.