FHA and the $8000 (or 10% of purchase price, whatever is lower) home buyer tax credit are a great combination. FHA offers 3.5% down and up to $35,000 for improvements. That can mean kitchen appliances, roof, flooring, paint and more. If you have not owned a home in the past three years you are considered a first-time homebuyer and me be eligible for the $8000 first-time homebuyer tax credit before it expires this year. Live in your home for three years and you don't have to repay the tax credit. FHA Home Loans
$8000 Homebuyer Tax Credit