Today came the news that HUD is getting close to OK'ing Upfront Tax Credit for first time homebuyers. According to Sean Donovan, FHA is close to monetizing First Time Homebuyer Tax Credit! When this happens, this means that HUD will allow FHA approved lenders and HUD approved non-profits, as well as state and local governmental entities to monetize the tax credit through short term bridge loans. In short, that tax credit has just become a part of a first time homebuyers' down payment! Video: FHA Close to Monetizing First Time Homebuyer Tax Credit!