There is a bank here in town promoting a new mortgage product to take advantage of the tax credit. Since you can't claim the credit before you actually buy a house, this bank will lend you the money on the assumption that they will recieve the $8,000 once you file your taxes or amended return. So they are basically taking an assignment on your taxes. I am not sure on the specifics as far as how they can take an assignment on a federal tax return but that is another story all together. The credit was not designed to be used for a downpayment but this bank is trying to use it that way. I am not sure if the Federal government would be all that thrilled that it is being used that way either. But if it kicks the real estate market up I suppose its not all that bad. I actually just got my $8,000 today plus the rest of my refund, I bought my house in February. For the first time in my adult life I will no longer have any credit card debt. Plus I have some money left over to due some home improvments. I am sure the government was hoping I would spend my entire $8,000 on purchases, services, etc but this is a once in a lifetime opporunity for me to wipe out all my credit card debt in one day and I am taking advantage of it.