About 10:30 this morning HUD Secretary Shaun Donovan said the department is seeking a way to make the $8,000 first-time buyer tax credit available to borrowers to use on down payment and closing costs, instead of waiting for their tax refunds. HUD wants permission for HUD-approved lenders and nonprofits to issue bridge loans to make the $8,000 available to borrowers at closing. "I expect details within just a few days," he said.
NAR has been working on this and ran into problems with the IRS because the tax refund is not to go to someone other than the Tax Payer.
Again, this was released today and as Secretary Donovan stated, he expects details in the next few days.