HUD Reversal: $8,000 First Time Homebuyer Tax Credit Clarification

I wanted to clarify the information that was released by HUD since the information they released last week was very generic. What I found out is that the proceeds of the $8,000 tax credit can only be used toward downpayment IF the 3.5% requirements have already been met. To clarify the $8,000 cannot be used CANNOT BE USED for the first 3.5% that a buyer puts down, but the money can be applied as an additional downpayment or as prepaid items or closing costs.