The annoucement recently that the 10% Buyer Tax credit - up to $8000 will be allowed to be applied towards the down payment. This should really help buyers that do not have the downpayment.
"The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time homebuyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers homebuyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time homebuyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home's price, up to the full amount of the tax credit."