There is a great article by holden lewis at bankrate.com that is must reading....click here
First-time homeowner tax credit
The law will extend a tax credit of up to $7,500 to first-time homebuyers.
Forgiveness to allow refinancing into FHA
Down payment assistance soon to be a thing of the past
The housing rescue bill, soon to be a law, bans down payment assistance programs such as the ones offered by Nehemiah and AmeriDream. The ban goes into effect Oct. 1.
updated
I think the term "Housing Rescue" may be a bit misleading. And doesn't the $7500 tax credit have to be paid back over time? I still haven't seen how that works! Bottom line, looks like anyone who needs to use a downpayment assistance program should buy before October 1st.
at this stage of the economy any good news is appreciated