© Breaking news
The First Home Fund, a shared equity pilot scheme to provide first-time buyers with funding, opened on 1 April this year with a budget of £60 million.
It was open to all first-time buyers in Scotland and could be used to help buy both new build and existing properties.
After just five working days, the funding, which was less than a third of last year's budget of £200 million, has been used up and applications have now closed, according to the Scottish government website.
Carol Ann McCaffrey, who had put an offer in for a property this week, took to Twitter to criticise the Scottish government.
She said: "What a kick in the teeth.
"I put an offer in for a house yesterday, it was accepted and you've removed the First Home Fund today, in less than a week after in was launched this financial year.
"What was the point in getting people's hopes up."
Another commenter reacted to the news on social media saying: "I can't believe the first home fund has been fully used in a week. No chance of getting on the property ladder now.
"Is there any reason why it's been reduced so drastically?"
Reacting to the news Nicola Barclay, chief executive of Homes for Scotland said the announcement will be "a huge blow" to many in Scotland who had their hopes up for buying a new home.
"This will clearly be very disappointing news to all those people who had been hoping that the First Home Fund would enable them to get onto the property ladder," she said.
"We anticipated that there would be huge demand given the success of the pilot scheme run last year.
"Despite this, the Scottish government allocated just 30 per cent of the levels spent in 2020, citing budget cuts from Westminster for the reduction."
She added: "I urgently call on Kate Forbes to act now to support all those who will be devastated by today's announcement.
"No one can be in any doubt about the need to support those unable to save for large deposits, and we will be watching closely at pledges made by all political parties as the election campaign continues."
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