Stay tuned for more information about “monetizing” the $8000 tax credit which will make it usable for a downpayment.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, made the announcement today at a day-long session devoted to the economy at the REALTORs® Legislative Meetings and Trade Expo in Washington DC.

You probably already know the details of the First-Time Home Buyer Credit.  If not, the post you’ll see when use use the previous link will fill you in.  What is new is the concept of using the tax credit as a downpayment.  A press release at the Wall Street Journal’s MarketWatch site notes:

• “According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”

This could be another compelling reason for those who qualify for the tax credit to buy now.  Naturally, no one wants to promote using the tax credit in a way that would get a home owner into debt they can’t afford.  But, used wisely, this downpayment assistance could be another step toward getting your buyers off the fence.