Michael DiMella's Q&A

chefjohhnyg,The $8000 tax credit cannot be used as part of a down payment.  You receive the credit only when filing your tax return after you purchase the home.  For a clear and concise, but full explanation of the tax credit see: How the new $8000 first time homebuyer tax credit will work.There are also a number of low down payment loan programs you may want to research to see if homebuying makes sense for you.  There are a number of great programs available through FHA loans, Mass Housing Loans, and City of Boston Home Center financial assistance.All that being said, my advice would be to NOT buy a home just because of the tax credit or just because a low down payment loan is available.  Continue to do your research and make sure it is a sound financial and family decision for you for the next 5+ years.  Owning a home is a great long term financial decision for most people, but it is not something to jump into just for a tax credit, for example.  It's a nice incentive for sure, but not something that should be the most important factor.  I'd be happy to help discuss further with you if you want - just contact me through my profile here on Zillow.