100% Financing is still available through USDA Guaranteed Rural Housing (GRH) This program also allow for repairs and does not include mortgage insurance.  This is only applicable for homes in eligible areas.

Should the 8,000 Tax Credit be used for a Down Payment for First Time Homebuyers purchasing a home before Dec 2009?

Yes, I would certainly say so.  With record low interest rates, thousands of foreclosed under valued properties available and tax credit incentives.  I would certainly say so.