Seems everyone jumped the gun last week on the plan to allow first time home buyers to take advantage of the Tax Credit at closing as part of a down payment. Seems HUD is concerned that this will create more bad loans and have shelved the idea for now.
It is an interesting thought that this could create more bad loans since the buyers now have to have a pretty good credit score to even buy a property. It will be interesting to see how this plays out in the next couple of weeks!