First-time home buyers can now use a federal tax credit worth up to $8,000 to help cover a down payment and other upfront costs if they are taking out a loan backed by the Federal Housing Administration. Read more about these changes in the articles below. Closing Cash From Uncle Sam FHA Adds Down-Payment Options to Housing Credit First-Time Home Buyers Can Turn Tax Credit Into Cash First-Time Home Buyer Credit Questions and Answers: Basic Information Government Allows Short-Term Loans for Tax Credit U.S. FHA to Apply $8,000 Credit to Home Buying