The U.S. government announced this week it is going to help some first-time home buyers with their down payment.

U.S. housing officials are working on a plan that would allow some first-time buyers to apply the $8,000 income tax credit toward their down payment on loans backed by the Federal Housing Administration. The idea is to allow home buyers to "monetize" the tax credit. Right now, home buyers must wait until they file their taxes to receive the credit.

The FHA program would allow approved lenders, non-profits, and state and local governments to fund short-term loans that could be used as down payments to be repaid once the borrower received the tax credit. Once they received their tax credit, they would pay off the short-term loan and put equity into their home.

The FHA requires a minimum 3.5% down payment on loans backed by the agency, which means that buyers could put little or nothing down on homes up to $230,000. This is drawing fire from some economists, who are concerned that this plan resembles the no-money down programs the FHA has worked to shut down.

The government, though, hopes this move will further stimulate the housing estate market. This incentive is set to expire December 1, 2009, so be aware of that. If you are a first-time buyer, you have a lot going for you in 2009: this $8,000 incentive, low interest rates, non-inflated prices and a large selection of homes for sale!

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