Does this sound right? No down payment, no closing, but they want our tax credit when we receive it?

We were looking into buying a home from a company. We had been denied an FHA loan initially with a lender. We decided to look into the option of a modular home because they had a different set of financing.

We were approved easily enough and everything sounds great.

No down payment. (up front)
No closing cost.
But the catch is, we give them the 8,000 dollar house credit we will recieve "as the down payment."

Now, I may be thinking about this all wrong, but with the amount of our loan, the fact that it is FHA (through them) and the closing cost I really don't think all that would add up to 8,000.

When we looked at a similar house, they quoted us at around 3,000 dollars as a down payment for the FHA loan.
Even if our closing costs were 3,000 dollars that still doesn't add up to the 8,000 that they're asking from us in the end..

Is there something I'm over looking in the procedure that makes this a good deal or am I right about my gut instinct that something seems fishy?

Thanks in advance!
What I'm wondering about is if this is actually a reasonable deal? We've never bought a home before so we don't know all the fees and other things that go along with it. For all I know, 8,000 dollars is the right amount to make it happen. I'm just not entirely sure. It would be great b/c we don't have a down payment at the moment, but I'm unsure.

Technorati Tags: buying a home, closing cost, closing costs, fha loan, gut instinct, modular home, thanks in advance

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